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2016 (11) TMI 1600 - HC - Income TaxExpenses incurred on Information Technology by the Head office on and charged to the Indian Branch - assessee was deductible u/s 37(1) without any restrictions contained in Section 44C? - Held that:- The grievance being that the expenditure incurred on Information Technology to the extent of ₹ 14.99 crores cannot be disallowed u/s 40A(i) for failure to deduct tax at source. It is clear that the the Revenue was not aggrieved by the order of the CIT(A) allowing deduction under Section 37(1) and also with the direction of the CIT(A) that the aforesaid payment would not be allowed as a deduction under Section 44C, therefore in the above view it is not open for the Revenue to urge this issue before us when the same was not urged before the Tribunal leading to the impugned order of the Tribunal. Question no.1 as formulated does not give rise to any substantial question of law National loss arising from revaluation of unmatured forward exchange contract - Allowable deduction - no accrual as the forward contract was not settled and without appreciating the true nature of the transaction - Held that:- Issue stands covered in favour of the assessee and against the Revenue by the decision of this Court in Commissioner of Income Tax v/s. Bank of India reported in [1995 (11) TMI 78 - BOMBAY HIGH COURT]. Appeal admitted on the substantial questions of law at question nos. (2), (3) and (5).
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