Disallowance u/s 40(a)(ia) unsustainable as TDS not deductible on reimbursement of mobilization and demobilization cost

Van Oord ACZ India Pvt Ltd Vs DCIT (ITAT Delhi) ITAT Delhi held that TDS not deductible u/s 195(1) on the reimbursement of mobilization and demobilization cost to the holding company. Accordingly, disallowance u/s 40(a)(ia) unsustainable. Facts- The assessee, a resident corporate entity, is a wholly owned subsidiary of M/s. Van Oord ACZ BV, Netherlands (now M/s Van Oord ACZ Marine Contractors BV) (‘VOAMC’). As stated, the assessee is engaged in the business of dredging, contracting reclamation and marine activities. For the assessment year under dispute, the assessee filed its return of in...