Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1640 - ITAT MUMBAIAddition on account of interest received from the Head Office - Held that:- The interest received by the Indian branch of a foreign bank from its Head Office, therefore, did not give rise to any income which was taxable in India since one could not make profit out of himself. Claim for deduction of bad debts - Held that:- This issue now stands squarely covered by the decision of Hon’ble Supreme Court in the case of TRF Limited vs. CIT (2010 (2) TMI 211 - SUPREME COURT ) wherein it has been held that as per the amended provisions of section 36(1)(vii), it is not necessary for the assessee to establish that the debt in fact has become irrecoverable and it is enough to claim deduction under the said provision if the relevant debt is written off by the assessee as irrecoverable in its books of account. Respectfully following the said decision of Hon’ble Supreme Court in the case of TRF Ltd. (supra), we uphold the impugned order of the ld. CIT(A) deleting the addition made by the A.O. on account of bad debts written off Disallowance of transaction charges on Nostro account u/s 40(a)(i) - Held that:- Transaction charges paid on Nostro Account were in the nature of bank charges for maintaining the accounts with banks outside India. These charges were recovered directly by way of debits to the concerned accounts of the assessee with these banks and the same represented business income of those banks which accrued/arisen outside India. As held by the Tribunal, no tax therefore was required to be deducted at source from the transaction charges paid on Nostro account and the disallowance made by the A.O. u/s 40(a)(i) of the Act was not sustainable. Respectfully following the orders of the Tribunal on the similar issue involved in earlier years, we uphold the impugned order of the ld. CIT(A) deleting the disallowance made by the A.O. on account of transaction charges u/s 40(a)(i) of the Act Traveling expenses incurred by the Head Office on traveling of its own staff and directly in connection with India branch are allowable u/s 37(1) of the Act and section 44-C has no application to such expenses
|