Amount received by liaison office over and above the expenses actually incurred is taxable

There cannot be any dispute with the legal contention of the learned counsel that the reimbursement of the expenses can never be income. Hon’ble Jurisdictional High Court has also held that the reimbursement of expenses can under no circumstances be regarded as a revenue receipt. However, in this case, as a matter of fact, what the Assessing Officer taxed is the amount received by the assessee over and above the reimbursement of the expenses. In fact, from the  amount received from the head office, the Assessing Officer had deducted the expenses incurred by the assessee and it is only t...