Case Law Details
K.C. Marketing Vs ACIT (ITAT Chennai)
Assessee has claimed various expenditure from its principal by way of reimbursement. The copies of relevant bills as well as credit notes issued by M/s Satnam Overseas Ltd. in favor of assessee has also been placed on page nos. 38 to 83 of paper-book. The statement of TDS deducted by assessee’s principal is also on record. Upon perusal of copies of financial statements as placed on record, it could be noted that the Profit & Loss Account has been credited as well as debited for the amount incurred by assessee on behalf of its principal. All these overwhelming evidences, in our considered opinion, support the case of the assessee and there is no concealment of income as alleged by lower authorities. The TDS may have been deducted by the principal while reimbursing the payment to the assessee, nevertheless, the same were mere reimbursements and could not be held to be the income of the assessee from any angle. Therefore, by deleting both the additions, we allow the appeal.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
1. The assessee is in third round of appeal before us. This appeal by assessee for assessment year 2005-06 arises out of the order of Ld. Commissioner of Income Tax Appeals -13, Chennai, [CIT(A)], dated 28.12.2018 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s. 143(3) r.w.s. 254 of the Act on 26.12.2017. In this appeal, the assessee is aggrieved by confirmation of addition of Rs.13.19 Lacs and another addition of Rs.11,500/-.
2. Having heard rival submissions and after going through the orders oflower authorities, our adjudication would be as under.
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