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2011 (4) TMI 920 - AT - Income TaxDisallowance of losses incurred in respect of securities transactions in which brokers were counterparties, on the ground that your appellants had not conformed to the provisions of section 15 of the Securities Contracts (Regulations) Act, 1956 - Held that:- provisions of this section applies to brokers, who are members of recognized stock exchanges and not to the appellant. Disallowance of expenses incurred by your appellant’s overseas branches for its Indian operations, on ground that such expenses come within the ambit of the provisions of section 44C of the Act pertaining to Head Office Expenses - Held that:- it is evident from the use of the words and phrases in the above section i.e., 'in respect of so much of the expenditure in the nature of head office expenditure as is in excess of the amount’ that these provisions are inapplicable to the cases, where the alleged expenses are exclusively incurred and accounted in the books. In the instant case, the expenses of Rs. 273.29 lakhs are undoubtedly falling within the definition of 'head office expenses’ within the meaning of the clause (iv) of the Explanation to section 44C of the Act. - book entries are not very important for determining the correct assessed income of the assessee. The claim can be made through the 'Computation of Income' route. The provision of section 44C are inapplicable in a case of expenses incurred exclusively by the Bank branches abroad in respect of NRI Desks maintained by those branches. - section 44C is inapplicable to this claim of the assessee - Decided in favor of assessee. Indo-USA treaty - limits of certain deductions of a permanent establishment with respect to head office expenditures. - held that:- the limitations for allowing certain expenses under the domestic law i.e., the Act, will apply to the income attributable to the permanent establishment. - as far as expenses incurred in India attributable to the business carried on in India are concerned, they have to be allowed subject to the limitations provided in the Act.
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