TaxTMI 
TaxTMI 
2017 (1) TMI 764
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.... 143(3) of the Act,on 30.01.2014,determining its income at Rs. 3.22 crores. 2. First Ground of appeal is about disallowance of advances and bad debts written off, amounting to Rs. 4.91 lakhs.During the assessment proceedings,the AO found that the assessee had claimed a sum of Rs. 3.04 lakhs as bad debts written off and a further sum of Rs. 1.87 lakhs as advances written off in its P&L account. She called for the breakup of the amounts in question, On verification it was observed by the AO that amounts written off by the assessee were not offered as income in the earlier years. She held that disputed amounts would not fall under the category of debts.The assessee was directed to justify the claim made by it in accordance with the conditions....
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....stablished as to how the same were applicable to the facts of the case under consideration, that it had failed to produce any documentary evidence to prove that loss had crystallized during the year under appeal.Finally, he upheld the order of the AO. 2.2. Before us,the Authorised Representative (AR) argued that expenditure was incurred for renovation of building, that it could not recover the amounts from the tenants,that the amounts became time barred,that assessee could not recover training fee from the persons whom it had trained though it had offered training fee for taxation, that the AU/FAA had not considered the Annex-8 and 9 of the reply submitted to the AU.He relied upon the cases of TRF Ltd.(supra) and Shreyas Morakhia(3421TR285....
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....had deducted tax at source while making payments as per provisions of section 195 of the Act. The assessee submitted that expenses in question were in the nature of reimbursement and therefore, no TDS u/s. 195 of the Act was liable to be deducted. The AO observed that the assessee had termed the payments as reimbursements, that same had income embedded in it, that the expenditure was incurred for services rendered or for benefits obtained by it, that it had incurred cost for obtaining software and licenses, that the purchases qualified as royalty payment as per section 9(1) (vi) of the Act,that it had made the impugned payment for obtaining specific services in consideration for the use of such information concerning industrial and commerci....
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....e licence /reimbursement of training cost, travel cost and miscellaneous expenses that the assessee was liable for deducting tax on these payments because same were in the nature of royalty,that as per the provisions of section 1 95(2)(iii) the assessee was liable to obtain certificate from AO for non deduction of tax at source, deducting tax at lower rate, that it had not produced such a certificate,that the assessee had failed to submit any application before the AO for obtaining the certificate.He referred to the case of Transmission Corporation of A.P. Ltd. and held that the assessee had violated the provisions of Section 195 of the Act and that the AO had rightly made the disallowance u/s. 40(a)(i) of the Act. 3.2.The Authorised Repre....
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....14. The learned Division Bench of the Delhi High Court was pleased to hold that reimbursement of expenses can, under no circumstances, be regarded as a revenue receipt and in the present case the Tribunal had found that the assessee received no sums in excess of expenses incurred. A similar issue had also come up for consideration before the Division Bench of the Calcutta High Court in CIT v. Dunlop Rubber Co. Ltd. [1983] 142 ITR 493 (Cal). The learned Division Bench was answering the following question: Whether,on the facts and in the circumstances of the case, the amounts received by the assessee (English company) from MIs. Dun lop Rubber Co. (India) Ltd. (Indian company) as per agreement dated July 29, 1957, constituted income assessab....