https://www.taxtmi.com/caselaws?id=217291 The ITAT Mumbai noted that software payments routed through an overseas affiliate could not be treated as a mere reimbursement without examining the real character of the transaction. Although the agreement was executed after the payments, its retrospective wording and the invoices naming the affiliate as customer suggested a routed purchase rather than simple expense recovery. Because the first appellate authority had not verified the nature of the software acquisition or the factual basis for the reimbursement finding, the matter required fresh examination before applying the legal tests on royalty and withholding tax. The reimbursement finding was set aside and the issue remitted for reconsideration. en-us Fri, 18 May 2012 00:00:00 +0530 Fri, 08 Apr 2016 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217291 The ITAT Mumbai noted that software payments routed through an overseas affiliate could not be treated as a mere reimbursement without examining the real character of the transaction. Although the agreement was executed after the payments, its retrospective wording and the invoices naming the affiliate as customer suggested a routed purchase rather than simple expense recovery. Because the first appellate authority had not verified the nature of the software acquisition or the factual basis for the reimbursement finding, the matter required fresh examination before applying the legal tests on royalty and withholding tax. The reimbursement finding was set aside and the issue remitted for reconsideration. Case-Laws Income Tax Fri, 18 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217291