CIT v. Industrial Engineering Projects (P) Ltd.

ITA 670/CHNY/2015[2009-10]Status: DisposedITAT Chennai29 Aug 2019AY 2009-10

…ssessing Officer has not given any findings in the assessment order that the reimbursement of expenses could be recognized as income of the assessee and assessable to tax. By following the decision in the case of CIT v. Industrial Engineering Projects P. Ltd. 202 ITR 1014, wherein the Hon’ble Delhi High Court has held that reimbursement of expenses can, under no circumstances, be regarded as revenue receipt; as well as the decision of the Division Bench of 6 I.T.A. Nos.668-671/Chny/15 the Calcutta High Court in the case of CIT v. Dunlop Rubber Co. Ltd. 142 ITR 493 for the preposition that the reimbursement of th…

Bimetal Bearings Limited, Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee for the assessment year

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 668, 669, 670 & 671/Chny/2015 िनधा"रण वष"/Assessment Years:2007-08 To 2010-11 M/S. Bimetal Bearings Limited, The Deputy Commissioner Of 18, Race Course Road, Vs. Income Tax, Large Taxpayer Unit, Coimbatore 641 018. 1775, Jawaharlal Nehru Inner Ring Road, Anna Nagar Western Extension, [Pan:Aaacb2036Q] Chennai 600 101. (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri R. Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 02.07.2019 घोषणा की तारीख /Date Of Pronouncement : 29.08.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: These Four Appeals Filed By The Same Assessee Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 17, Chennai All Dated 30.01.2015 Relevant To The Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11. Since Common Issues Have Been Raised In These Appeals, Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Brevity.

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT

ITA 669/CHNY/2015[2008-09]Status: DisposedITAT Chennai29 Aug 2019AY 2008-09

…ssessing Officer has not given any findings in the assessment order that the reimbursement of expenses could be recognized as income of the assessee and assessable to tax. By following the decision in the case of CIT v. Industrial Engineering Projects P. Ltd. 202 ITR 1014, wherein the Hon’ble Delhi High Court has held that reimbursement of expenses can, under no circumstances, be regarded as revenue receipt; as well as the decision of the Division Bench of 6 I.T.A. Nos.668-671/Chny/15 the Calcutta High Court in the case of CIT v. Dunlop Rubber Co. Ltd. 142 ITR 493 for the preposition that the reimbursement of th…

Bimetal Bearings Limited, Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee for the assessment year

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 668, 669, 670 & 671/Chny/2015 िनधा"रण वष"/Assessment Years:2007-08 To 2010-11 M/S. Bimetal Bearings Limited, The Deputy Commissioner Of 18, Race Course Road, Vs. Income Tax, Large Taxpayer Unit, Coimbatore 641 018. 1775, Jawaharlal Nehru Inner Ring Road, Anna Nagar Western Extension, [Pan:Aaacb2036Q] Chennai 600 101. (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri R. Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 02.07.2019 घोषणा की तारीख /Date Of Pronouncement : 29.08.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: These Four Appeals Filed By The Same Assessee Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 17, Chennai All Dated 30.01.2015 Relevant To The Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11. Since Common Issues Have Been Raised In These Appeals, Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Brevity.

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT

ITA 668/CHNY/2015[2007-08]Status: DisposedITAT Chennai29 Aug 2019AY 2007-08

…ssessing Officer has not given any findings in the assessment order that the reimbursement of expenses could be recognized as income of the assessee and assessable to tax. By following the decision in the case of CIT v. Industrial Engineering Projects P. Ltd. 202 ITR 1014, wherein the Hon’ble Delhi High Court has held that reimbursement of expenses can, under no circumstances, be regarded as revenue receipt; as well as the decision of the Division Bench of 6 I.T.A. Nos.668-671/Chny/15 the Calcutta High Court in the case of CIT v. Dunlop Rubber Co. Ltd. 142 ITR 493 for the preposition that the reimbursement of th…

Bimetal Bearings Limited, Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee for the assessment year

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. Nos. 668, 669, 670 & 671/Chny/2015 िनधा"रण वष"/Assessment Years:2007-08 To 2010-11 M/S. Bimetal Bearings Limited, The Deputy Commissioner Of 18, Race Course Road, Vs. Income Tax, Large Taxpayer Unit, Coimbatore 641 018. 1775, Jawaharlal Nehru Inner Ring Road, Anna Nagar Western Extension, [Pan:Aaacb2036Q] Chennai 600 101. (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri R. Vijayaraghavan, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 02.07.2019 घोषणा की तारीख /Date Of Pronouncement : 29.08.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: These Four Appeals Filed By The Same Assessee Are Directed Against Different Orders Of The Ld. Commissioner Of Income Tax (Appeals) 17, Chennai All Dated 30.01.2015 Relevant To The Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11. Since Common Issues Have Been Raised In These Appeals, Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Brevity.

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT

ITA 4362/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 May 2019AY 2010-11

…ssessing Officer has not given any findings in the assessment order that the reimbursement of expenses could be recognized as income of the assessee and assessable to tax. By following the decision in the case of CIT v. Industrial Engineering Projects P. Ltd. 202 ITR 1014, wherein the Hon’ble Delhi High Court has held that reimbursement of expenses can, under no circumstances, be regarded as revenue receipt; as well as the decision of the Division Bench of 6 I.T.A. Nos.668-671/Chny/15 the Calcutta High Court in the case of CIT v. Dunlop Rubber Co. Ltd. 142 ITR 493 for the preposition that the reimbursement of th…

The Nielsen Company (Us) Llc, Mumbai vs. DDIT (It) 4(2), Mumbai

In the result the Ground No

Bench: Shri G.S. Pannu, Vice- & Shri Pawan Singhthe Nielsen Company (Us) Dcit (It) - 4(2) Llc, C/O Nielsen (India) Pvt. Mumbai. Ltd., 6Th Floor, Block-C, Godrej Vs. It Park, 02 Godrej Business, District, Phirojshah Nagar, Lbs Marg, Vikhroli (W), Mumbai-400079. Pan: Aacfj7526Q Appellant Respondent Appellant By : Shri P.J. Pardiwala With Sh. Madhur Agrawal (Ars) Respondent By : Shri Himanshu Sharma & Sh. Nishant Samaiya (Sr. Drs)

For Appellant: Shri P.J. Pardiwala with ShFor Respondent: Shri Himanshu Sharma and Sh. Nishant Samaiya (Sr. DRs)

Section 143(3)Section 144C(3)Section 234BSection 253Section 254(1)

…s no transfer of process or formula. 29. The Hon’ble Jurisdictional High Court in CIT Vs Siemens Aktiongesellschaft (supra) while relying on the judgment of a Division Bench of the Delhi High Court in Industrial Engineering Projects (P.) Ltd.'s case [1993] 202 ITR 1014 (Delhi), held that reimbursement of expenses can, under no circumstances, be regarded as a revenue receipt. Similar issue had also come up for consideration before the Division Bench of the Calcutta High Court in Dunlop Rubber Co. Ltd.'s case (142 ITR 493 Cal). Considering the above factual and legal discussions the Ground No. 4 of the appeal…

M/S. Dolphin Drilling Pte. Ltd., New Delhi vs. ADIT, Dehradun

In the result, the appeal is partly allowed for statistical purposes

ITA 355/DEL/2012[2007-08]Status: DisposedITAT Delhi27 Feb 2019AY 2007-08

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2007-08

Section 143(3)Section 92C

…in support of the proposition that pure reimbursements, without any mark-up do not contain any element of income and hence are not chargeable to tax. • CIT v. Tejaji Farasram Kharawalla Ltd.: 67 ITR 95 (SC) • CIT v. Industrial Engineering Products Pvt. Ltd.: 202 ITR 1014 9Del.) • CIT v. Dunlop Rubber Co. Ltd.: 142 ITR 493 (Cal) • CIT vs. DLF Commercial Project Corporation: ITA 627/2012 and 507/2013 (Del.) • CIT vs. Gujarat Narmada Valley Fertilizers Co. Ltd.: [2014] 361 ITR 192 (Gujarat) • CIT v. Siemens Aktiongesellschaft: [2009] 310 ITR 320 (Bombay) • CIT v. Microsoft Corporation Of India (P) Limited: 220 CTR…

M/S. Pernod Ricard India P. Ltd., Gurgaon vs. ITO(TDS), New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 6640/DEL/2013[2008-09]Status: DisposedITAT Delhi08 Jan 2019AY 2008-09

Bench: Sh. N. K. Billaiya & Ms. Suchitra Kambleassessment Year: 2008-09 Pernod Ricard India Pvt. Ito (Tds), Ltd., Building No.8A, 4Th Vs Ward – 3(2) Floor, Dlf Cyber City, Dlf New Delhi Phase-Ii, Gurgaon -122002 Pan Aaacs4781P (Appellant) (Respondent)

Section 201

…10 ITR 320/177 Taxman 81. a Division Bench of this court held that it was in agreement with the view taken by the Calcutta High Court in Dunlop Rubber Co. Ltd. case (supra) and by the Delhi High Court in CIT v. Industrial Engineering Projects (P.) Ltd. 119931 202 ITR 1014 (Delhi). The observations of this court in Siemens Aktiongesellschaft (supra) are as follows (page 340): "That leaves us with the last contention as to whether the amounts by way of reimbursement are liable to tax. To answer that issue, we may gainfully refer to the judgment of a Division Bench of the Delhi High Court in CIT v. Industrial Engine…

Harshna International, New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3408/DEL/2013[2009-10]Status: DisposedITAT Delhi10 Dec 2018AY 2009-10

Bench: Sh. N. K. Saini, Hon’Ble & Smt. Beena A. Pillaiita No. 3408/Del/2013 : Asstt. Year : 2009-10 Harshna International, Vs Income Tax Officer, C/O J.M. Kalra, Advocate, 206, D. Ward-19(4), R. Chambers, 12/56, Desh New Delhi Bandhu Gupta Road, Karol Bagh, New Delhi-110005 (Appellant) (Respondent) Pan No. Aaefh7454F Assessee By : Sh. R. K. Gupta, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing : 03.12.2018 Date Of Pronouncement : 10.12.2018 Order Per N. K. Saini: This Is An Appeal By The Assessee Against The Order Dated 21.12.2012 Of Ld. Cit(A)-Xxii, New Delhi.

For Appellant: Sh. R. K. Gupta, CAFor Respondent: Sh. Amit Katoch, Sr. DR

Section 133(6)Section 194CSection 44A

…7 SCR (3) 876 : "To the extent of the receipt representing reimbursement of expenses the same were not taxable. It is only when there was surplus that the same should be taxed.” b) Delhi High Court in the case of CIT vs. Industrial Engineering Projects (1993) 202 ITR 1014 Delhi: "in our opinion of the aforesaid judgment of the Supreme Court, reimbursement of expenses can, under no circumstances, be regarded as revenue receipt." 8 Harshna International c) Bombay High Court in the case of Director of Income Tax (International Taxation) versus Krupp Udhe GMBH : "ITAT was justified in holding that charges towards r…

DCIT, Cir-11(1), Kolkata vs. M/S. at & S India Pvt. Ltd., Mysore

In the result, all three appeals filed by the Revenue are dismissed

ITA 975/KOL/2017[2010-11]Status: DisposedITAT Kolkata05 Oct 2018AY 2010-11

Bench: Sh. J.Sudhakar Reddy & Sh. A.T.Varkey

…company then the same would not constitute income in the hands of the foreign company in India. Attention is further invited to the decision of the Hon'ble Delhi High Court rendered in the case of CIT v Industrial Engineering Projects Pvt Limited reported in 202 ITR 1014, therein the Hon'ble Delhi High Court by taking the ITA No.515/KOL/2016, 974 & 975/KOL/2017 [Assessment Year: 2011-12, 2009-10, 2010-11] cue from the Hon'ble Supreme Court decision in the case of CIT v Tejaji Farasram Kharawalla Ltd (67 ITR 95) has held that the reimbursement of actual expenses would not be taxable in the hands of the person re…

DCIT, Cir-11(1), Kolkata vs. M/S at & S Pvt. Ltd., Karnataka

In the result, all three appeals filed by the Revenue are dismissed

ITA 515/KOL/2016[2011-2012]Status: DisposedITAT Kolkata05 Oct 2018AY 2011-2012

Bench: Sh. J.Sudhakar Reddy & Sh. A.T.Varkey

…company then the same would not constitute income in the hands of the foreign company in India. Attention is further invited to the decision of the Hon'ble Delhi High Court rendered in the case of CIT v Industrial Engineering Projects Pvt Limited reported in 202 ITR 1014, therein the Hon'ble Delhi High Court by taking the ITA No.515/KOL/2016, 974 & 975/KOL/2017 [Assessment Year: 2011-12, 2009-10, 2010-11] cue from the Hon'ble Supreme Court decision in the case of CIT v Tejaji Farasram Kharawalla Ltd (67 ITR 95) has held that the reimbursement of actual expenses would not be taxable in the hands of the person re…

Shri Dilip Kumar Nayak, Bhubaneswar vs. JCIT, Range-2, Bhubaneswar

In the result, appeal of the assessee is partly allowed for

ITA 86/CTK/2017[2010-11]Status: DisposedITAT Cuttack05 Sept 2018AY 2010-11

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year : 2010-2011

For Appellant: Sri P.K.Mishra, ARFor Respondent: Shri A.K.Mohapatra, CIT DR

…nt of expenditure. For ready reference, we extract para Nos.21 to 24 of the order relied upon by the Ld. A.R as follows: “21. We have also carefully gone through the judgement of the Delhi High Court in CIT Vs. Industrial Engineering Projects Pvt. Ltd. (1993) 202 ITR 1014. In the case before the Delhi High Court the assessee had agreement with M/s. ETAG, a Swiss Company, for rendering services. The assessee would receive a minimum sum of ` 1,20,000/- per month for the services rendered besides reimbursement of certain costs and expenditure incurred by the assessee while rendering the services as per the agreement…

Duncans Tea Ltd., Kolkata vs. DCIT, Central Circle-4(1), Kolkata

In the result, the appeal of assessee is allowed

ITA 1961/KOL/2016[2012-13]Status: DisposedITAT Kolkata31 Jul 2018AY 2012-13

Bench: Shri Aby. T. Varkey, J.M. & Dr.A.L.Saini, A.M.)

For Appellant: Shri: Subash Agarwal, Advocate, ld.ARFor Respondent: Shri Arindam Bhattacharjee, Addl. CIT, ld.DR

Section 143(3)Section 194CSection 194C(6)Section 40

…before us, we observe that the assessee has 5 reimbursed the expenses to its agent and it was not a direct payment for freight by the assessee to the transporter. Besides, the Hon'ble Delhi High Court in the case of CIT Vs. Industrial Engg. Projects P. Ltd. (202 ITR 1014), held that it is a settled proposition of law that when there is no element of income and the payment is only as a reimbursement of expenses incurred by the payee, then no disallowance can be made u/s. 40(a)(ia) of the Act. We find that the issue of reimbursement of charges which are incurred by agents on behalf of assessee cannot be subject ma…

ACIT, Cir-29, Kolkata vs. Ans Leather Company, Kolkata

In the result, the appeal filed by the Revenue is dismissed

ITA 1071/KOL/2015[2009-2010]Status: DisposedITAT Kolkata30 May 2018AY 2009-2010

Bench: Shri A. T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1071/Kol/2015 ("नधा"रणवष" / Assessment Year: 2009-10) Acit, Circle-29, Kolkata Vs. Ans Leather Company

For Appellant: Shri Soumyajit Dasgupta, Addl. CIT(Sr. DR)For Respondent: Shri Subash Agarwal, Advocate

Section 133(6)Section 143(2)Section 143(3)Section 172Section 40

…) has held that reimbursement of expenses cannot be regarded as revenue in the hands of the payee. While deciding the issue, the Hon'ble High Court has followed the decision of Hon'ble Delhi High Court in the case of CIT Vs. Industrial Engg. Projects P. Ltd. (202 ITR 1014). It is a settled proposition of law from the various decisions of High Courts and particularly the decision of Hon'ble jurisdictional High Court (supra) that when there is no element of income and the payment is only as a reimbursement of expenses incurred by the payee, then no disallowance can be made u/s. 40(a)(ia). In the case in hand, the A…

Dishman Pharmaceuticals & Chemicals Limited, Ahmedabad vs. The ACIT, (OSD), Range-1, Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

ITA 3086/AHD/2013[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

ITA 2957/AHD/2013[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

…ve Co. Ltd. (245 ITR 823) held that no part of expenses of foreign technician deputed by a foreign company could be treated as payment in lieu of fees and was not liable to deduction of tax at source. In the case of CIT vs. Industrial Engg. Projects (P) Ltd. (202 ITR 1014) the Hon'ble Delhi High Court has held that reimbursement of expenses does not constitute income and accordingly not taxable. In this case, the assessee had an agreement with the foreign company to render certain services for a minimum fee of Rs. 1.2 lakhs per year. The agreement also provided that certain costs or expenses could be reimbursed.…

The ACIT, (OSD)Range-1, Ahmedabad vs. M/S. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

ITA 817/AHD/2011[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

…ve Co. Ltd. (245 ITR 823) held that no part of expenses of foreign technician deputed by a foreign company could be treated as payment in lieu of fees and was not liable to deduction of tax at source. In the case of CIT vs. Industrial Engg. Projects (P) Ltd. (202 ITR 1014) the Hon'ble Delhi High Court has held that reimbursement of expenses does not constitute income and accordingly not taxable. In this case, the assessee had an agreement with the foreign company to render certain services for a minimum fee of Rs. 1.2 lakhs per year. The agreement also provided that certain costs or expenses could be reimbursed.…

The DCIT(OSD)Range-1, Ahmedabad vs. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

ITA 773/AHD/2011[2006-07]Status: DisposedITAT Ahmedabad23 May 2018AY 2006-07

…ve Co. Ltd. (245 ITR 823) held that no part of expenses of foreign technician deputed by a foreign company could be treated as payment in lieu of fees and was not liable to deduction of tax at source. In the case of CIT vs. Industrial Engg. Projects (P) Ltd. (202 ITR 1014) the Hon'ble Delhi High Court has held that reimbursement of expenses does not constitute income and accordingly not taxable. In this case, the assessee had an agreement with the foreign company to render certain services for a minimum fee of Rs. 1.2 lakhs per year. The agreement also provided that certain costs or expenses could be reimbursed.…

Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad vs. The ACIT., (OSD)Range-1, Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

Bench: Shri Rajpal Yadav & Shri Amarjit Singh

ITA 692/AHD/2011[2005-06]Status: DisposedITAT Ahmedabad23 May 2018AY 2005-06

…ve Co. Ltd. (245 ITR 823) held that no part of expenses of foreign technician deputed by a foreign company could be treated as payment in lieu of fees and was not liable to deduction of tax at source. In the case of CIT vs. Industrial Engg. Projects (P) Ltd. (202 ITR 1014) the Hon'ble Delhi High Court has held that reimbursement of expenses does not constitute income and accordingly not taxable. In this case, the assessee had an agreement with the foreign company to render certain services for a minimum fee of Rs. 1.2 lakhs per year. The agreement also provided that certain costs or expenses could be reimbursed.…

The DCIT(OSD)Range-1, Ahmedabad vs. Dishman Pharmaceuticals & Chemicals Ltd., Ahmedabad

In the result, we allow appeal of the assessee and delete penalty confirmed by the ld

Bench: Shri Rajpal Yadav & Shri Amarjit Singh