2010 (3) TMI 287

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....nd in law ITAT was justified in holding that charges towards reimbursement of expenses cannot be included in income? ii) Whether when income is taxed on gross basis, non inclusion of charges towards reimbursement of expenses would be in violation of law as it would tantamount to taxation of income partly on net basis? iii) Whether on the facts and in the circumstances of the case and in law the ITAT was justified in approving the deletion of levy of interest under Section 234B of the Act? 3. The learned Counsel appearing on behalf of the Revenue has stated that the first and second question relate to the same issue namely whether reimbursement of expenses would be liable to be included in the income and hence they are taken up toge....

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.... as the issue of reimbursement is concerned, the Tribunal held that though there was a conflict between the judgment of the Kerala High Court, which was relied upon by the Commissioner of Income Tax (Appeals) and the judgment of the Calcutta High Court in the case of CIT V/s. Dunlop Rubber Company Limited {142 ITR 493} it would follow a view which was favourable to the assessee, consistent with the judgment in Vegetable Products Limited {88 ITR 192}. 6. The question as to whether a reimbursement for expenses would form part of the taxable income is not resintegra in so far as this Court is concerned. In Commissioner of Income Tax V/s. Siemens Aktiongesellschaft {310 ITR 320 (Bom.)} a Division Bench of this Court held that it was in agree....