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TMI Blog2012 (9) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision rendered in case of Sumitomo Banking Corp. Mumbai (2012 (4) TMI 80 - ITAT MUMBAI ) wherein it was held that interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. As further held by the Special Bench in the said case, the provisions of sec.195 consequently would not be attracted in case of such payment of interest by the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71/- of the Head Office." 2. The assessee in the present case is a banking company incorporated in Japan. It carries on banking business in India through a Branch at Mumbai which constitutes its PE. The return of income for the year under consideration was filed by the assessee on 30.10.2004 declaring total income of Rs. 4,33,11,260/-. In the said return, the interest of Rs. 60,32,971/- paid by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowed the deduction claimed by the assessee in respect of interest paid to the Head office to that extent by invoking the provisions of sec.40(a)(i) of the Act. 3. Against the assessment order passed by the AO, an appeal was preferred by the assessee before the Ld. CIT (A) challenging both the additions made by the AO on account of interest paid to Head office by the Indian branch treati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) wherein it was held that the interest paid to HO not being taxable in India, no tax was required to be deducted by the Indian Branch from the payment of interest made to HO. Aggrieved by the order of the Ld. CIT (A), the revenue has preferred this appeal before the Tribunal. 4. At the time of hearing before us, nobody has appeared on behalf of the assessee. The Ld. DR, however, has fairly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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