ITAT Mumbai Judgments — September 2017

The Tribunal held that advances received for room nights are not revenue receipts, as confirmed by High Court judgments in the assessee's own case. Regarding commission expenses, the Tribunal directed the Assessing Officer to verify and allow pro-rata deduction.

The Tribunal restored the matter to the AO, directing the AO to decide the issue after allowing the assessee to produce evidence. This was done in the interest of justice and fair play.

The Tribunal held that there was a reasonable cause for the delay and that the delay should have been condoned. The Tribunal emphasized that substantial justice should not be denied due to minor technical delays.

The Tribunal held that payments merely reimbursing expenses incurred by a foreign entity on behalf of the assessee do not require TDS. It also noted that even if TDS was not deducted, the payee having paid taxes on the income meant the assessee was not in default.