Dismissing the appeal of the revenue the Court held that, reimbursement of expenses of its subsidiary company for marketing expenses, is not liable to deduct tax at source. No disallowances can be made. (AY. 2009-10)
PCIT v. Manugraph India (P) Ltd. (2019) 267 Taxman 437 (Bom.) (HC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source– Subsidiary company-Reimbursement of expenses-Not liable to deduct tax at source-No disallowance can be made. [S. 195]