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2015 (4) TMI 1041 - HC - Income TaxDeduction of expenses incurred at the head office directly in relation to Indian branches - expenses incurred for solicitation of deposits from NRI I.E. NRI marketing expenses - Non-resident banking company – assessee contended the same to be not covered by the provisions of section 44C – - Held that:- Held that:- Exclusive expenses incurred by the head office for Indian branch are outside the purview of sec. 44C and only common head office expenses are governed by this section. Once the amount is found to be incurred exclusively by H.O. towards the Indian branch, the same is required to be allowed in terms of section 37(1) without any reference to section 44C. See ADIT(I.T.) Vs. Bank of Bahrain & Kuwait (2011 (1) TMI 923 - ITAT, MUMBAI ), CIT v. Emirates Commercial Bank Limited (2003 (4) TMI 2 - SUPREME COURT) - Decided in favor of assessee Income chargeable at special rate under section 115A - to be allowed on gross basis OR on net basis - Held that:-we find that the income chargeable at special rate under section 115A ought to be on gross basis and not on net basis did not really arise from the assessment or the assessment order. In that regard we find that the Tribunal in its order particularly at page 102 onwards has found that the said question and pertaining to the allowability of expenditure incurred in respect of earning dividend and interest income liable to tax at special rate under section 115A was, in any event, covered and against the Revenue.It has found that the assessee in the instant case is carrying on composite business earning incomes which are either not at all chargeable to tax or chargeable to tax at lower rate or chargeable to tax at regular rate. Section 14A has been referred by the Tribunal in that regard. The judgment of the Hon'ble Supreme Court in the case of Rajasthan State Warehousing Corporation vs. Commissioner of Income Tax (2000 (2) TMI 5 - SUPREME Court ) has been followed by the Tribunal. We do not find that such a course can, therefore, raise any substantial question of law. - Decided against revenue
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