Dismissing the Departmental appeal, the High Court held that the Tribunal was justified in holding that the payment / reimbursement of “shared services cost” to holding company was genuinely incurred by the assesse, wholly and exclusively for the purpose of its business and is paid based on actual expenditure incurred, hence allowable as business expenditure . Not liable to deduct tax at source . (AY. 2008-2009)
CIT .v. ASK Wealth Advisors (P) Ltd. (2018) 168 DTR 349 (Bom.) (HC)
S. 40(a)(ia) : Amounts not deductible -Deduction at source – Reimbursement of “shared services cost” to holding company – Reading of relevant clauses of agreement do not lead to inference that amount is paid on estimation- Not liable to deduct tax at source [ S.194C.]