Reimbursement of expenses cannot be treated as fees for technical services

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ITAT ALLAHABAD BENCH

Obeetee (P.) Ltd.

v.

Additional Commissioner of Income-tax

IT APPEAL NO. 249 (All.) OF 2011
[ASSESSMENT YEAR 2005-06]

Date of Pronouncement – 23.11.2012

 

In this case Payment was made for reimbursement of the permission granted to the assessee for using trade mark ‘Wool, New Zealand’. Such payment cannot be said to be fee for technical services. Even otherwise also, in the light of the detailed discussions made in paragraph nos. 13, 14 and 15 of this order, such reimbursement of expenses are not subject to TDS. Accordingly, no disallowance is warranted. The addition of Rs. 2,88,135/- is deleted.