2016 (12) TMI 500

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....Whether on the facts and circumstances of the case and in law, the Tribunal was right in holding that the income chargeable at special rate u/s 10(15) would be on gross basis and not on net basis? (ii) Whether on the facts and circumstances of the case and in law, the Tribunal has erred in holding that the expenses incurred at Head Office on behalf of Indian Branch of the assessee are deductible u/s 37(1) of the Act without any restrictions contained in Section 44C? (iii) Whether on the facts and circumstances of the case and in law, the Tribunal has erred in directing the Assessing Officer to tax the interest received u/s 244A at the rate as prescribed in Article 12 of DTAA between India and France? (iv) Whether on the facts and c....

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....pect of the same respondent assessee for the Assessment Year 199798 the question nos. (i) to (iii) as proposed do not give rise to any substantial questions of law. (c) Thus, not entertained. 4. Regarding question no.(iv) : (a) We are enable to understand how the Revenue is aggrieved by the impugned impugned order of the Tribunal. This for the reason that it holds that the interest income received from the Head Office and other overseas branches would be subjected to tax. In fact, the impugned order of the Tribunal upholds the view taken by the Assessing Officer which is approved by the Commissioner of Income Tax (Appeals) [CIT(A)]. It is the respondent assessee who had challenged the order of the CIT(A) to the extent it held that the in....

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.... the lower authorities bringing to tax the interest income received from its Head Office and other overseas branches were held to be taxable. It is in that context that the impugned order of the Tribunal held that the interest paid by the assessee to its Head Office / overseas branches would also be deductible to bring to tax the net interest income i.e. interest received less interest paid. (b) In the above view, question (v) as proposed by the Revenue does not give rise to any substantial question of law. Thus, not entertained. 6. Regarding question (vi) : (a) For the purposes of conducting its operation, the respondent assessee receives Information Technology support from its Asia Data Processing Centre (ADPC) at its Regional Head Off....