Hon.Bombay High Court has held as under:
1.The question as to whether a reimbursement for expenses would form part of the taxable income is not res integra insofar as this Court is concerned.
2. In CIT v. Siemens Aktiongesellschaft [2009] 177 Taxman 81 (Bom.), a Division Bench of this Court held that sharing of expenses of the research utilised by the subsidiaries as well as the head office organization would not be income which would be assessable to tax.
3. Appeal of Revenue is dismissed
Copy of judgment is available at following link:
http://www.mediafire.com/file/3n4ymmoz2km/BOM%20HC%20ON%20REIMBURSEMENT_KRUPP.pdf