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| The Tax Publishers2019 TaxPub(DT) 3948 (Del-Trib) INCOME TAX ACT, 1961
Section 194C
Where payments made by assessee to its regional distributors were nothing but reimbursement of expenses, however, in the interest of justice and fair play, it was just and proper to restore this issue to AO and assessee was directed to furnish all invoices raised by its regional distributor on the basis of which it had made payment as reimbursement.
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Tax deduction at source-under section 194C - Applicability - Amount reimbursed towards advertisement expenditure incurred by distributors -
Assessee's grievance was that CIT(A) erred in holding that assessee was required to withhold tax under section 194C from the amount reimbursed towards advertisement expenditure incurred by the distributors and that disallowance made under section 40(a)(ia). Held: Payments made by assessee to its regional distributors were nothing but reimbursement of expenses. However, in the interest of justice and fair play, it was just and proper to restore this issue to AO. Assessee was directed to furnish all the invoices raised by its regional distributor on the basis of which it had made payment as reimbursement. AO was directed to verify the invoice and decide the issue whether payments were reimbursements or not.
REFERRED : CIT v. M/s. DLF Commercial Project Corporation ITA No. 507 of 2013 : 2015 TaxPub(DT) 2969 (Del-HC) Jagran Prakashan Ltd. v. Dy. CIT (2012) 345 ITR 288 (All) : 2012 TaxPub(DT) 2050 (All-HC) CIT v. Fortis Health Care Ltd. (2009) 181 Taxman 257 (Del) : 2009 TaxPub(DT) 1340 (Del-HC)
FAVOUR : In assessee's favour by way of remand
A.Y. :
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