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2019 (2) TMI 1693 - HC - Income TaxAddition made on NRI Mobilization expenses on the basis of decision of Bombay High Court in the case of Emirates Commercial Bank Ltd [2003 (4) TMI 2 - BOMBAY HIGH COURT] - HELD THAT:- The respondent assessee is a bank. For Assessment Year 200001, the assessee had claimed expenditure of ₹ 4.56 crores under the head "NRI Deposit Mobilization". According to the assessee to assist and facilitate the investments by NRIs, such a branch was set up. The said amount was expended towards administrative and other related expenses and the entire expenditure was for the purposes of head office and, therefore, no restrictions in terms of Section 44C should be imposed. The Tribunal accepted the view of the assessee relying upon the decision in the case of this very assessee for the earlier AY 1989-90 and 1990-91. The Tribunal also referred to certain other decisions. Revenue submitted that the Tribunal has erred in not applying the provisions of Section 44C of the Act. On the other hand, learned Counsel for the assessee supported the view of the Tribunal and contended that in an identical situation for the earlier assessment years, the Revenue had not carried the matters in appeal before the High Court. We note that non-filing of the appeals by the Revenue could not have been on the ground of low tax effect. Under the circumstances, the decisions of the Revenue not to challenge the Tribunal's judgment in earlier years in respect of this very assessee, can be seemed as conscious decision of accepting the proposition involved. This question is, therefore, not entertained.
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