2011 (3) TMI 388

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....nd index related services and products for the Indian Capital Markets. The Assessing Officer noted that under the head "Operating Administration and Other Expenses" the assessee had claimed an expenditure of Rs. 22,08,793/- towards the deputed personnel cost. The said payment was claimed to be made to National Stock Exchange of India Ltd. and CRISIL who were the two holding companies of the assessee company. The AO asked as to why the TDS was not deducted on said payments. The assessee explained to the AO that it is a joint venture between NSEIL and CRISIL who had deputed their staff to perform work for the assessee. Both parent companies incurred employment related costs with respect to all the employees on their payrolls including the one....

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....ment of expenses pertaining to personnel deputed with the assessee company. He argued that the said payment were pure reimbursement towards sharing of deputed personnel cost and there was no element of profit, payment was not made towards any service contract and also that holding companies had deducted TDS u/s. 192 of the Act from the salaries paid to the personnel deputed and reimbursed by the assessee. In its written submission the assessee relied on various case laws. The assessee also argued that sufficient details were filed during the assessment proceedings in support of its argument that the expenditure was reimbursement of personnel expenses. The assessee requested that the disallowance made by the AO should be deleted.   5....