https://www.taxtmi.com/caselaws?id=249478 Reimbursements received for clearing expenses incurred on behalf of clients were treated as pure pass-through amounts, with no mark-up or profit element, so the 8% addition to income was deleted. Godown rent paid as an intermediary for clients was also not liable to disallowance under section 40(a)(ia) because it was neither claimed nor deductible in the assessee's own accounts. The operative principle applied was that reimbursement without trading character does not constitute taxable profit, and disallowance for failure to deduct tax at source arises only where the amount is otherwise deductible in computing the assessee's business income. The assessee succeeded on the substantive tax additions. en-us Thu, 03 Jul 2014 00:00:00 +0530 Tue, 17 Mar 2015 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249478 Reimbursements received for clearing expenses incurred on behalf of clients were treated as pure pass-through amounts, with no mark-up or profit element, so the 8% addition to income was deleted. Godown rent paid as an intermediary for clients was also not liable to disallowance under section 40(a)(ia) because it was neither claimed nor deductible in the assessee's own accounts. The operative principle applied was that reimbursement without trading character does not constitute taxable profit, and disallowance for failure to deduct tax at source arises only where the amount is otherwise deductible in computing the assessee's business income. The assessee succeeded on the substantive tax additions. Case-Laws Income Tax Thu, 03 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249478