Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 500 - BOMBAY HIGH COURTTaxability on interest received from Head Office and other overseas branches - Held that:- We were told that the Revenue is aggrieved because no disallowance under Section 14A of the Act has been done by the Tribunal on the interest income. This explanation for being aggrieved, we are unable to comprehend for the reason that once the Tribunal holds that interest income is taxable, no occasion would arise to disallow expenditure under Section 14A of the Act. This indicates the casual manner of filing appeals without any application of mind. - Decided against revenue Deduction on account of interest paid by assessee - Held that:- Before the Tribunal, the respondent assessee had challenged the order of the lower authorities bringing to tax the interest received by it from its Head Office and branch offices. However, at the hearing before the Tribunal, the respondent assessee gave up this challenge. Consequently, the orders of the lower authorities bringing to tax the interest income received from its Head Office and other overseas branches were held to be taxable. It is in that context that the impugned order of the Tribunal held that the interest paid by the assessee to its Head Office / overseas branches would also be deductible to bring to tax the net interest income i.e. interest received less interest paid.- Decided against revenue TDS u/s 195 - whether payment constitute Royalty as per Explanation 2 to Section 9(1)(vi) - disallowance under Section 40(a)(i) - Held that:- The impugned order of the Tribunal is a well reasoned order. It holds that mere taking assistance from ADPC at its Regional Head Office, cannot be held to be payment of Royalty for the use of assets. The decision of the Delhi bench Tribunal relied upon by both the Assessing Officer and also by the CIT(A) in the case of Asia Satellite Telecommunications Co. Ltd. (2002 (11) TMI 263 - ITAT DELHI-C ) has been reversed by the Delhi High Court as reported as Asia Satellite Telecommunications Co. Ltd. Vs. Director of Income Tax [2011 (1) TMI 47 - DELHI HIGH COURT]. The entire issue is now before the Assessing Officer to determine whether or not the amount paid for the information technology facility to the Regional Head Office is at all taxable or not within the parameters of Section 44C of the Act even if it is treated as Head Office expenses.- Decided against revenue
|