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2015 (1) TMI 871 - HC - Income TaxHead office liability to deduct TDS - Interest payment made by the Indian Branch to its head office abroad - whether allowed as a deduction in computing the profits of the appellant’s branch in India ? - Held that:- Interpreting section 40(a)(i ) of the Income Tax Act read with section 195 of the Act this interest must be accounted for or credited in the account of some person who is chargeable under the Act. In other words, this remittance of interest must result in an income which is chargeable under the Act. In those circumstances tax may be deducted at source. But where this interest is not so chargeable, no tax is deducted. In this case, by virtue of the above convention, the head office of the appellant is not liable to pay any tax under the Act.[ See ABN Amro Bank NV-vs-CIT, WB-III, Kolkata and Another - 2010 (12) TMI 340 - CALCUTTA HIGH COURT] - Decided in favour of assessee.
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