Case Law Details
Pr. CIT Vs. M/s ITD Cemindia JV (Bombay High Court)
The employees and personnel deputed by the company giving such workers on loan to the assessee company continued to be the employer, the assessee merely reimbursed the expenditure in terms of salary structure of the employees to the employer company. There was, therefore, no question of deducting tax at source while reimbursing such costs.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. This appeal by the Revenue under Section 260-A of the Income Tax Act, 1961 challenging judgment of Income-tax Appellate Tribunal (for short “Tribunal”). The appellant Revenue urges following question for our consideration:-
“Whether on the facts and the circumstances of the case the ITAT is correct in law in deleting the additions made by the AO in disallowing the reimbursement of the salary and related expenses to the tune of Rs.5,67,80,664/- under Section 40 (a) (ia) of the Income Tax Act, 1961?”
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