Section 14A disallowance and guarantee commission accrual turned on factual findings; treaty taxability of branch interest remains open.

Section 14A disallowance was found inapplicable where dividend income arose from investments made out of the assessee's own funds, so no basis for disallowance remained. Guarantee commission was treated as accruing over the guarantee period, not wholly in the year of receipt, because guarantees were often cancelled early and the unexpired portion of commission was returned. The revenue's challenges on these two issues were not entertained because they turned on factual findings upheld by the lower authorities. The only question admitted for hearing concerned the taxability of interest paid by an Indian branch to its head office under Article 13 of the tax treaty.

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