Case Law Details
Gemological Institute International Inc. Vs DCIT (ITAT Mumbai)
It is evident that the Tribunal after analyzing the different terms of the agreement and examining the facts on record have recorded a factual finding that the agreement clearly envisages that fee for technical services is different from the expenses incurred on third party cost. Further, it has recorded a finding of fact that there is a clear bifurcation in the agreement between the internal cost incurred by the assessee and external cost borne or paid by the assessee on behalf of GIA India. Thus, on the basis of aforesaid facts, the Tribunal has applied the ratio laid down by the Hon’ble Supreme Court in case of DIT v/s A.P. Moller Maersk, 392 ITR 186 (SC) and held that the amount received towards reimbursement of cost cannot be taxed at the hands of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
Aforesaid appeal at the instance of the assessee is directed against assessment order dated 28th September 2017, passed under section 143(3) r/w 144C(3) of the Income Tax Act, 1961 (for short “the Act”) in pursuance to the directions of the Dispute Resolution Panel-I (DRP), Mumbai, pertaining to the assessment year 2014-15.
2. In ground no.1, the assessee has challenged the taxability of Rs. 15,43,815, received towards reimbursement of expenses.
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