https://www.taxtmi.com/caselaws?id=750837 ITAT Mumbai remanded the matter to Commissioner regarding reimbursement of clinical research expenses treated as income. The AO had treated reimbursement amounts as taxable income due to insufficient documentation including party-wise details, work orders, invoices, and evidence of actual expense incurrence. The Commissioner approved the assessee's treatment but failed to examine supporting documents. ITAT directed fresh examination of documentation to verify reimbursement claims lack profit element. Regarding 13% markup on payments, ITAT ruled markup applicable only if assessee provided active services beyond mere conduit role in coordinating clinical trials. Revenue appeal partly allowed for statistical purposes with both issues remanded for fresh consideration. en-us Thu, 29 Feb 2024 00:00:00 +0530 Mon, 01 Apr 2024 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750837 ITAT Mumbai remanded the matter to Commissioner regarding reimbursement of clinical research expenses treated as income. The AO had treated reimbursement amounts as taxable income due to insufficient documentation including party-wise details, work orders, invoices, and evidence of actual expense incurrence. The Commissioner approved the assessee's treatment but failed to examine supporting documents. ITAT directed fresh examination of documentation to verify reimbursement claims lack profit element. Regarding 13% markup on payments, ITAT ruled markup applicable only if assessee provided active services beyond mere conduit role in coordinating clinical trials. Revenue appeal partly allowed for statistical purposes with both issues remanded for fresh consideration. Case-Laws Income Tax Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750837