https://www.taxtmi.com/caselaws?id=203730 The Tribunal ruled in favor of the assessee, holding that the reimbursement of withholding tax paid by Tata Elxsi was not subject to disallowance under section 40(a)(ii) of the Income-tax Act, 1961. The Tribunal concluded that the amount reimbursed to Tata Elxsi was not considered as tax on income for disallowance under the provision, as it was the income of the non-resident payable as tax to the Indian Government. Therefore, the special effect expenditure claimed by the assessee was allowed, and the disallowance was deleted. en-us Thu, 31 Mar 2011 00:00:00 +0530 Thu, 16 Jun 2011 08:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203730 The Tribunal ruled in favor of the assessee, holding that the reimbursement of withholding tax paid by Tata Elxsi was not subject to disallowance under section 40(a)(ii) of the Income-tax Act, 1961. The Tribunal concluded that the amount reimbursed to Tata Elxsi was not considered as tax on income for disallowance under the provision, as it was the income of the non-resident payable as tax to the Indian Government. Therefore, the special effect expenditure claimed by the assessee was allowed, and the disallowance was deleted. Case-Laws Income Tax Thu, 31 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203730