TMI Blog2017 (2) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... on of assessee that no expenditure has been incurred or claimed by the Indian Branch in respect of interest earned by the Head Office (which is not taxable)HELD THAT:- The issue has been decided in assessee s favour by the Mumbai ITAT, in assessee s own case for Assessment Years 2004-05, 2005-06, 2007-08 and 2009-10. The Indian Branch has not received / earned any interest income from its Head Office or other foreign branches and hence there can be no question of the interest expense in question being incurred to earn any exempt income and hence the same cannot be disallowed u/s.14A. The proposition that no disallowance can be made u/s.14A of the Income-tax Act,1961 in case there is no exempt income is now well settled and one can refer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the CIT(A) in assessee s own case for earlier years viz., Assessment years 2003-04, 2004-05, 2005-06 and 2008-09. The CIT(A) has also relied upon the decision of the Mumbai Bench of the ITAT in assessee s own case for Assessment Year 2004-05. Further similar view has been upheld by the Mumbai Bench of the ITAT in assessee s own case for Assessment Years 2006-07, 2007-08 and 2009-10, thus deciding the issue in assessee s favour. 4. In view of the above findings of CIT(A) and relying on the decision of the Tribunal in assessee s own case, we do not find any reason to interfere in the order of CIT(A) for deleting disallowance of data processing cost. 5. Next issue pertains to taxability of interest paid to Head Office. We found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors Pvt. Ltd., (2015) 230 Taxman 63 (Allahabad) CIT v/s.Corrtech Energy Pvt. Ltd., (233 Taxman 130) (Gujarat) ACIT v/s. Mr.M. Baskaran (ITA No.1717/Mds/2013) CIT v/s.Lakhani Marketing Inc. (2015) 226 Taxman 45 (P H) Huntsman International (India) P. Ltd., v/s. DCIT (2016) 66 taxmann.com 325 (Mum.Trib) 6. Contention of assessee before us was that no expenditure has been incurred or claimed by the Indian Branch in respect of interest earned by the Head Office (which is not taxable). Accordingly, it was pleaded that provisions of Section 14A are not applicable to the said case. 7. We found substantial merit in the contention of learned AR, however, in the interest of justice, we restore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
