Employee Salary Reimbursement Not Taxable as FTS under India-Japan DTAA

Advics Co., Ltd. Vs ACIT (ITAT Delhi) ITAT held that impugned receipts are in the nature of employee salary reimbursement cost not having any element of income and not taxable in India as FTS under the provisions of the India-Japan DTAA. Consequently, the addition of Rs. 2,70,27,031/- on account of cross charge by the assessee from its Indian AEs is deleted. FULL TEXT OF THE ORDER OF ITAT DELHI The appeal filed by the assessee is directed against the final assessment order dated 19.03.2022 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (the “Act”) in pursuance to t...