2018 (11) TMI 1260

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....nel in pursuance of an agreement with the Kerala State Electricity Board [for brevity "KSEB"], for supply of technical services. Whether such travel expenses could be claimed as a deduction from the technical know-how fees, is the question raised in the appeals. The Assessing Officer [for brevity "AO"] found such claim to be prohibited by Section 115A(3) of the Income Tax Act, 1961 [for brevity "IT Act"]. The first appellate authority and the Tribunal affirmed the said view. The Tribunal relied on an order of the very same Tribunal in I. T. A. No. 440/Coch/1998 in M/s. SNC Shawinigan Inc. Canada v. Additional Commissioner of Incom e -tax (Assmt. ). The facts in the cited decision and the present appeals are identical. 2. Shorn of details....

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.... of May, 1977. (3) No deduction in respect of any expenditure or allowance shall be allowed to the assessee under sections 28 to 44C and section 57 in computing his or its income referred to in sub-section (1)". By sub-section (3), any deduction in respect of any expenditure or allowance under Sections 28 to 44C and Section 57 has been specifically prohibited. 4. The assessee-appellant relies on a decision of the Hon'ble Supreme Court in Director of Income Tax v. A. P. Moller Maersk [(2017) 5 SCC 651]. Therein the foreign company, who was assessed to tax, was carrying on the business of shipping within India. Whether the income from the use of Global Telecommunication Facility, called "Maersk Net", could be classified as ....