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Credit is to be allowed in respect of TDS made on higher amount of reimbursement than actually offered to tax
Case Law Details
- Case Name
- Commissioner of Income Tax Vs Lear Automotive India Ltd. (Delhi High Court)
- Appeal Number
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
Undisputedly, the assessee company earned income of Rs. 4,65,00,000/- only by way of Engineering fees. Another amount of Rs 4,65,00,000/- had been received as tooling advance. This latter amount was to be paid to the vendors of M/s. Mahindra and Mahindra Ltd. This payment was a reimbursement. That being so, it could not be considered as the income of the assessee company. It was by sheer mistake that M/s. Mahindra and Mahindra Ltd. has deducted TDS on the whole amount of Rs 9,30,00,000/-. The TDS amount was thus in excess of the asses sable tax on the payment made by M/s. Mahindra and Mahindra...
