No TDS liability on assessee for mere reimbursement of expenses – ITAT

Brief of the Case ITAT Delhi held In the case of Luxmi Rice Mills vs. ITO that there is no TDS liability on the assessee on account of reimbursement of expenses. In the present case, the assessee reimbursed the expenses to the bank and the bank ought to have deducted the TDS when there was a contract in between the bank and the NBHC, but there was no contract between the assessee and NBHC. Therefore, provisions of section 40a (ia) were not applicable as the assessee was not required to deduct TDS u/s 194C on the reimbursement of the expenses. Facts of the Case The assessee was engaged in the m...