2014 (4) TMI 276

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.... Sr. Adv. The Assessing Officer was of the opinion that the assessee had violated the provisions of Chapter XVII-B of the Income-tax Act, 1961, in not deducting tax at source on the amount of Rs. 1,20,84,768 paid to Malhotra Global Eximp Pvt. Ltd. and, therefore, the amount was disallowed under section 40(a)(ia) of the Income-tax Act, 1961. The reasoning advanced by the Assessing Officer is ....

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....re mere reimbursements. It is a fact that M/s. Malhotra Global Eximp Pvt. Ltd. is an independent entity and is not a unit of the assessee-company. It is also not established by the assessee by sufficient evidence as to why Malhotra Global Eximp Pvt. Ltd. would carry out some work on behalf of the assessee-company without a profit motive. When the entities are separate and independent, the transact....

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....o not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals) in allowing Rs. 1,12,84,318 out of total disallowance of Rs. 1,20,84,768 under section 40(a)(ia) of the Act made by the Assessing Officer. We uphold the order of the learned Commissioner of Income-tax (Appeals)." The Revenue has once again come up in appeal. There is an application for condonation of de....