9911796707
TMI Blog2019 (2) TMI 2043X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue is liable to be dismissed. We hold so. Addition u/s 40(a)(i) - whether CIT(A) is correct in holding that the provisions of section 40(a)(i) do not apply without appreciating that the interest was chargeable to income? - HELD THAT:- It is not Sec. 40(a)(i) of the Act which has been invoked by the Assessing Officer in order to bring to tax the impugned interest income. Pertinently, in this year, the impugned interest income has been brought to tax on the ground that it accrues or arises in India on account of assessee s PE in India. In contrast, in the earlier year, Sec. 40(a)(i) of the Act was invoked to disallow the expenditure represented by the interest paid by the Indian branch to the Head Office on the ground of non-de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law, the CIT(A) is correct in holding that the provisions of section 40(a)(i) do not apply without appreciating that the interest was chargeable to income. 3. The Appellant prays that the order of the Ld. CIT(A) on the above ground(s) be set aside and that of the Assessing officer be restored. 4. The Appellant prays that the appeal is maintainable in this case in view of Circular No. 21/2015 dated 10.12.2015 of the CBDT. 3. At the time of hearing, it was a common ground between the parties that the substantive dispute involved in this appeal is fully covered by the precedents in assessee s own case and in this regard, a copy of the order of the Tribunal in ITA Nos. 3282/Mum/2009 602/Mum/2013 dated 26.03.2014 pert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly become representative assessee / agent as per Sec. 163(1)(c) of the Act. In this background, the Assessing Officer referred to Article 11(2)(a) of the India-Japan DTAA and held that the interest income of ₹ 6,82,65,645/- of the Head Office was taxable in India @ 10%. The aforesaid matter was carried in appeal by the assessee before the CIT(A). The CIT(A) referred to the decision of the Tribunal in assessee s own case for Assessment Year 2005-06 (supra) and held that interest paid by the Indian branch of the assessee-Bank to its overseas Head Office is not chargeable to tax in India. Against such a decision, Revenue is in appeal before us. 5. Insofar as Ground of appeal no. 1 is concerned, the grievance of the Revenue is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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