2012 (9) TMI 193

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Jagtap, Accountant Member - This appeal is preferred by the revenue against the order of the Ld. CIT (A)-33, Mumbai dated 28.09.2007 on the following grounds: "1.  On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in directing the Assessing Officer to delete the disallowance of Rs. 40,32,971/- made under section 40(a)(i) of the Act. "2.  On the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d income of the Head office of the assessee chargeable to tax in India. Accordingly, he brought the same to tax in the hands of the assessee @ 10% on gross basis. In so far as deductibility of the said interest paid to the HO while computing the profits attributable to the PE in India, the AO found that the assessee has deducted tax at source from the payment of interest only to the extent of Rs. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Ld. CIT (A) deleted the addition made by the AO on account of interest paid by the Indian Branch to the overseas Head office treating the same as income of the Head office chargeable to tax in India by following the decision of Kolkota Special Bench of the ITAT in the case of ABN Amro Bank NV v. Asstt. DIT, International Taxation [2005] 97 ITD 89. He also deleted the disallowance of interest ex....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....axmann.com 364 (Mum.) wherein it has been 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 Indian Branch to overseas Head office and the question of disallowanc....