2017 (9) TMI 1858

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.... ORDER The appeal of the revenue and the cross objection filed by the assessee are directed against the order dated 25.11.2016 passed by Ld CIT(A)-3, Mumbai and they relate to the assessment year 2012-13. The revenue is aggrieved by the decision of Ld CIT(A) in deleting the disallowance made u/s 40(a)(ia) of the Act. The assessee is supporting the decision of Ld CIT(A) in the Cross objection fi....

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....of sec. 40(a)(ia) would not be attracted. The AO was not convinced with the said explanations and accordingly disallowed the above said amount of Rs. 38.59 lakhs u/s 40(a)(ia) of the Act. The Ld CIT(A), however, deleted the addition by observing that the Tax is not required to be deducted on reimbursements. Aggrieved, the revenue has filed this appeal. 3. The Ld D.R submitted that the assessee ....

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....ed to deduction of tax at source. The assessee has reimbursed the amount to M/s CKIL on which tax has already been deducted at source. Since the impugned payments have been made M/s CKIL on behalf of the assessee and the tax has been deducted at source there from by M/s CKIL, in my view, it should be construed that M/s CKIL has deducted tax at source also on behalf of the assessee. In this view of....