Case Law Details
Pr. CIT Vs Goldman Sachs (India) Finance Pvt Ltd. (Bombay High Court)
The amount in question was by way of reimbursement of costs. The Tribunal held that Assessee had paid such sums towards administrative costs such as the employee cost, rent, finance and legal corporate recharge etc. The Tribunal noted that, GSIPL had provided services to the assessee by deploying its employees for such work and the cost was for reimbursement for such expenses besides other related expenditure. Revenue was unable to dislodge these findings of fact recorded by the Tribunal. That being the position, we must proceed on the basis that the payment in question was in the nature of reimbursement of costs. As held by the Supreme Court in the case of Director of Income Tax v/s. A. P. Moller Maersk A. S. reported in 78 www.taxguru.in 287 and consistently followed by this Court in the number of decisions, liability to deduct tax at source in such a case, would not arise.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. The Revenue is in the appeal against the judgement of the Income Tax Appellate Tribunal, Mumbai (“the Tribunal” for short) dated 11.5.2015.
2. The following questions are presented for our consideration:-
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