2019 (1) TMI 1417

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....t of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 14.1.2016 raising following substantial question of law:- " Whether on the facts and circumstances of the case, the Tribunal is correct in law in deleting the additions made by the Assessing Officer in disallowing the reimbursement of the salary and related expenses to the tune of Rs. 4,33,33,687/- under Section 40(a)(ia) o....

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....enture (assessee). The CIT(A) further noted that the assessee vide letters dated 12.2.2013 and 19.2.2013 had explained to the Assessing Officer that the payment was towards reimbursement of the salary expenses paid to ITD Cementation India Ltd towards deputed employees and personnel for doing the work of ITD Cem India JV as per the contractual agreement in the Joint Venture Agreement. It was noted....

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....e amount in question was paid by way of reimbursement of expenditure. The employees and personnel deputed by the company giving such workers on loan to the assessee company continued to be the employer, the assessee merely reimbursed the expenditure in terms of salary structure of the employees to the employer company. There was, therefore, no question of deducting tax at source while reimbursing ....