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TMI Blog2003 (3) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts credited to Interest Suspense Account being interest on sticky loans and advances?" - "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in directing the Assessing Officer to allow head office expenses at Rs. 13,45,492 being average head office expenses and not the least 9 of the three amounts mentioned in section 44C of the Income-tax Act?" - The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question is answered in the affirmative, i.e., in favour of the assessee and against the Department. Question No. 2: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in directing the Assessing Officer to allow head office expenses at Rs. 13,45,492 being average head office expenses and not the least 9 of the three amounts mentioned in section 44C of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee as is attributable to the business or profession of the assessee in India; whichever is the least:" If one reads the above quoted section 44C, it refers to deduction of head office expenditure in case of non-residents. The scheme of section 44C suggests that the non-resident assessee is entitled to deduction, proportionate to the expenditure allocable to Indian operations, out of the to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive break-up of expenses. Consequently, the Income-tax Officer estimated the actual head office expenditure at Rs. 5 lakhs under clause (c). In this case, we do not have the details of expenditure in the Income-tax Officer's order under clause (a). Be that as it may, the Commissioner (Appeals), however, took the view that in this case, clause (b) of section 44C was applicable as even in the earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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