Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
SC held that Section 44C applies to all "head office expenditure" of a non-resident, whether common or incurred exclusively for Indian branches, thereby subjecting such expenditure to the statutory ceiling. It rejected the restrictive construction excluding exclusive expenditure and disapproved the contrary view of the Bombay HC in Emirates Commercial Bank as not laying down the correct law. SC clarified that the statutory Explanation, read with the mischief rule, is broad and inclusive, and the term "attributable" does not create a common/exclusive dichotomy. The question of law was answered in favour of the Revenue, and the matters were remanded to ITAT for limited verification under the tripartite test.
SC held that Section 44C applies to all "head office expenditure" of a non-resident, whether common or incurred exclusively for Indian branches, thereby subjecting such expenditure to the statutory ceiling. It rejected the restrictive construction excluding exclusive expenditure and disapproved the contrary view of the Bombay HC in Emirates Commercial Bank as not laying down the correct law. SC clarified that the statutory Explanation, read with the mischief rule, is broad and inclusive, and the term "attributable" does not create a common/exclusive dichotomy. The question of law was answered in favour of the Revenue, and the matters were remanded to ITAT for limited verification under the tripartite test.
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