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2022 (9) TMI 1577
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....free income, and accordingly calculating disallowance u/s. 14A as per Rule 8D at Rs. 3,64,31,158/ b) The learned CIT (A) ought to have considered the appellant's submission that the expression "in relation to means u/s 14A dominant and immediate connection, as has been judicially defined by the Supreme Court in the case of H.H. Maharajadhiraja Madhav Rao Jivaji Rao Scindia Bahadur of Gwalior & Others v UOI (1971) 1 SCC 85, and appellant had not incurred any expenditure in relation to exempt income. c) The disallowance upheld by learned CIT (A) is unjustifiable and must be quashed. 2. EXPENDITURE ON REFURBISHMENT OF PREMISES AND SOFTWARE - 14,91,98,977/- (Pages 15 to 21 of CIT(A)'s order) a) The learned CIT (A) erred in estimating 25% of the expenditure incurred on refurbishment of leasehold premises as capital in nature. Accordingly, expenditure of Rs. 1,77,56,417/- was disallowed as capital expenditure on which depreciation at the eligible rate was allowed. b) The learned CIT(A) further erred in confirming the disallowance of expenditure incurred on Software Development expenses made by the Assessing Officer aggregating to Rs. 1....
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....tion of Section 115JA. * The Memorandum explaining the provisions of the Finance Bill, 1996, explaining the introduction of section 115JA states that studies have shown that in spite of the fact that companies have earned book profits and have paid handsome dividends, no tax has been paid by them to the exchequer. In case of the Branch-PE of a foreign company, the question of payment of dividends out of book profits does not arise. For this reason also, the provisions of Section 115JA are not intended to apply to Branch-PE of foreign companies, which are governed by the tax treaty provisions. * Since the section provides for presumptive rate of profits, which is not beneficial to the Appellant, due to its carried forward losses and which, therefore has to be disregarded in view of the provisions contained in section 90(2) of the Act c) The contention upheld by learned CIT (A) is unjustifiable and must be quashed. 4. DENIAL FOR DEDUCTION OF HEAD OFFICE EXPENDITURE OF Rs. 23,28,71,503/- IN ENTIRETY AND RESTRCITING THE CLAIM TO Rs. 2,43,70,712 u/s. 44C (Page 23 of CIT(A)' order) a) The learned CIT(A) erred in holding that the claim of t....
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.... rival submissions and material placed on record, we observe that as the said additional grounds are legal grounds, wherein, the facts are on record and facts do not require fresh investigation, following the decision of Hon'ble Supreme Court in the case of National Thermal Power Co., Limited v. CIT 229 ITR 383 (SC), we admit the said additional grounds of appeal. 7. At the outset, Ld. AR of the assessee with regard to original Ground No. 1 which is in respect of tax free interest and proportionate expenses disallowed for an amount of Rs..3,64,31,158/- brought to our notice Para No. 6.1 of the Assessment Order and Para No. 4.3.0 to 4.3.2 of Ld.CIT(A) order, he submitted that assessee has own funds and interest free funds are far more than the investments and no borrowed funds were utilized for the purpose of investment. Ld. AR further brought to our notice that similar ground which assessee has raised before the Coordinate Bench in ITA.No. 7891 and 9229/Mum/2014 for the A.Y. 1997-98 and the Coordinate Bench has considered and adjudicated the issue in favour of the assessee. Copy of the order is placed on record. 8. Ld. DR fairly agreed that the issue is covered in favour of t....
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.... on refurbishment of premises and software, Ld. AR submitted that the bank incurred expenditure towards electrical fittings, false ceiling, interiors, temporary fittings, paintings wooden partition, flooring etc. and it is essential for the Bank to incur such expenses for proper ambience as it is in a customer centric industry. Ld. AR relying on the following case laws prayed that the above expenses be disallowed: - Refurbishment: (i). Madras Auto Service Pvt. Ltd., [233 ITR 468 (SC) (ii). R.B Bansilal Abirchand Spg & Weaving Mills vs. CIT 31 ITR 427 (Nagpur- HC) (iii). CIT vs. Rex Talkies (18 Taxman 363 (Karnataka - HC) (iv). CIT vs. Oxford University Press 108 ITR 166 (Bom - HC) (v). ACIT vs. India United Mills Ltd (8 Taxman 182) (Bom - HC) (vi). Empire Jute Co. Ltd - 124 ITR 1 (SC) (vii). Tea Estate (P) Ltd. - 198 ITR 535 (Cal) (viii). Nila Products - 148 ITR 99 (Bom) (ix). Bhagat Industries Corporation - 126 ITR 645 (P&H) (x). Girdhari Dass & Sons - 105 ITR 339 (All) (xi). Assam Bengal Cement Co Ltd. - 27 ITR 34 (SC) (xii). Ooty Dasaprakash - 237 ITR 902 (Mad) ....
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....assesee claimed before the Income-tax Officer the expenditure of the said sums of Rs. 1, 62,835/- and Rs. 50, 937/- in the relevant assessment years as capital loss. In the alternative, the assessee claimed depreciation on capital investment; in the alternative, the assessee claimed deduction of the payments as business expenditure or as extra rent for the lease. Ultimately, the Income-tax Tribunal has held that the expenditure of the said two amounts for the construction of a new building is in the nature of business expenditure for proper carrying on of the business of the assessee. The Tribunal has, therefore, treated these amounts as revenue expenditure and allowed a deduction in that regard to the assessee. The claim of the department that the expenditure was capital expenditure and was, therefore, not deductible was negatived by the Tribunal. On the application of the department the Tribunal referred the following question to the High Court for its determination under Section 256(1) of the Income-tax Act, 1961 : "Whether on the fact and in the circumstances of the case the Appellate Tribunal was right in holding that the building expenses of Rs. 1,62,835/- a....
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...., therefore, could not have claimed any depreciation. Looking to the nature of the advantage which the assessee obtained in a commercial sense, expenditure appears to be revenue expenditure. The test for distinguishing between capital expenditure and revenue expenditure in our country was laid down by this Court in Assam Bengal Cement Co. Ltd. v. Commissioner of Income-tax, West Bengal (27 ITR 34). In that case, the appellant-company had acquired from the Government of Assam lease of certain lime-stone quarries for a period of 20 years for the purpose of manufacture of cement. The lessee had, inter alia, agreed to pay an annual sum during the whole period of the lease as a protection fee and in consideration of that payment, the lessor undertook not to grant to any person any lease, permit or prospecting licence for lime-stone. This Court examined tests laid down in various cases for distinguishing between capital expenditure and revenue expenditure. One of the standard tests now in use was laid down in the case of Atherton v. British Insulated and Helsby Cables Ltd. ([1925] 10 Tax. Cases 155). It said : "When an expenditure is made, not only once and for all but with a vi....
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....e assessee got the benefit of reduced rent. The High Court has, therefore, rightly considered this as obtaining a business advantage. The expenditure is, therefore, to be treated as revenue expenditure. Although there are a number of cases dealing with this question, we will limit ourselves to examining a few cases where the assessee, by expending money, created and asset of an enduring nature. However, the asset so created did not belong to the assessee. In such a situation the courts have held that the expenditure was for better carrying on of the business of the assessee and could be allowed as revenue expenditure, looking to the circumstances of each of those cases. Thus in Lakshmiji Sugar Mills Co. P. Ltd. v. Commissioner of Income-tax, New Delhi (82 ITR 376) the assessee company was carrying on the business of manufacture and sale of sugar. It paid to the Cane Development Council certain amounts by way of contribution for the construction and development of roads between various sugarcane-producing centres and the sugar factories of the assessee. The roads remained the property of the Government. This Court held that the expenditure was not of a capital nature and ha....
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....uction of tenements for its workers. The tenements remained the property of the Housing Board. It was held that the expenditure was incurred wholly and exclusively on the welfare of the employees and, therefore, constituted legitimate business expenditure. As the assessee company acquired no ownership rights in the tenements, this Court said that the expenditure was incurred merely with a view to carry on the business of the company more efficiently by having a contented labour force. All these cases have looked upon expenditure which did bring about some kind of an enduring benefit to the company as a revenue expenditure when the expenditure did not bring into existence any capital asset for the company. The asset which was created belonged to somebody else and the company derived an enduring business advantage by expending the amount. In all these cases, the expense has been looked upon as having been made for the purpose of conducting the business of the assessee more profitably or more successfully. In the present case also, since the asset created by spending the said amounts did not belong to the assessee but t he assessee got the business advantage of using modern p....
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....ded under section 90(2) of the Act. In this context, the assessee also relied upon CBDT Circular no.333, dated 12th April 1982. Thus, in sum and substance, it was submitted by the assessee that when the India-U.K. Tax Treaty specifically provides mode of computation of profit, it will override the provisions of section 115JA of the Act. The Assessing Officer after considering the submissions of the assessee observed that under the Article-7 of the Tax Treaty no specific method of computation for calculation of tax has been provided. He observed, the said Article only provides for taxability of business profit directly attributable to Bank's branches in India. Whereas, what section 115JA of the Act seeks to tax is nothing but the profits derived by the assessee shown in the Profit & Loss Account in respect of Indian branches. Thus, ultimately, he held that the assessee is liable to pay tax under section 115JA of the Act and computed the tax accordingly under the said provision. The assessee challenged the aforesaid decision of the Assessing Officer before the first appellate authority. 5. Learned Commissioner (Appeals) after considering the submissions of the assessee did n....
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....counts have to be maintained as per the provisions of the Act. In this context, he strongly relied upon the observations of learned Commissioner (Appeals). 8. We have considered rival submissions and perused material on record. The main plank of assessee's argument against applicability of section 115JA of the Act is, assessee being a banking company maintaining its accounts under the Banking Regulations Act, 1949, the provision contained under section 115JA of the Act will not apply. Undisputedly, the assessee is a banking company and has opened its branches in India after obtaining permission of the RBI. Therefore, the assessee is governed under the Banking Regulations Act, 1949. Section 115JA of the Act provides for computation of total income chargeable to tax to be an amount equal to 30% of the book profit in case such income is less than 30% of the book profit. However, sub- section (2) of section 115JA of the Act mandates that the company for the purpose of section 115JA of the Act has to prepare its Profit & Loss Account in accordance with the provisions of Part-II & III of Schedule- VI of the Companies Act, 1956. Undisputedly, the assessee being governed under the....
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....im u/s. 44C of the Act. Ld. AR submitted that discriminatory provisions have to be ignored for foreign/non-resident assessee in view of Tax Treaty (e.g., Article 26 of India- UK Tax Treaty). In support of the above contentions, he relied on the following case laws:- (i). DIT v. Citibank N.A. (377 ITR 69) (Bom HC) - Sec 40(a)(i) (ii). CIT v. Herbalife International India (P) Ltd - 384 ITR 276 (Del HC) - Sec 40(a)(i) (iii). Rajeev Sureshbhai Gajwani v. ACIT - 129 ITD 145 (at Paras 7 & 8.5) (SB - Ahd) - Sec 80HHE (iv). Standard Chartered Bank v. IAC - 39 ITD 57 (Mum) - Sec 36(1)(viia) - UK Treaty (v). Metchem Canada Inc. v. DCIT - 284 ITR (AT) 196 (Mum) - Sec 44C (vi). Rolls Royce Industrial Power Ltd v. ACIT - 42 SOT 264 (Del) - Sec 44AD -UK Treaty DaimlerChrysler India - 29 SOT 502 (Pune) - Sec 79 OTHER CASES-COVERED IN FAVOUR (vii). Citibank N. A. v. ACIT ITA Nos. 5275 & 5276/Mum/2001 (at para 30) (Mum) - Sec 40(a)(i) (viii). DCIT v. Lazard India (P.) Ltd - 41 SOT 72 (Mum) - Sec 40(a)(i) (ix). Central Bank of India v. DCIT - 42 SOT 450 (Mum) - Sec 40(a)(i) (x). B4U International Holdi....
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.... incurred for the purposes of the business of the PE including executive and general administrative expenses, whether incurred in the State in which the PE is situated or elsewhere as are in accordance with the provisions of and subject to the limitations of the taxation laws of that State. However, no such deduction shall be allowed in respect of amounts, if any paid (otherwise than as a reimbursement of actual expenses) by the PE to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the PE. Likewise, no account shall be taken in the determination of the profits of a PE, for amounts charged (otherwise than towards reimbursement of actual expenses), by the PE to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specifi....
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....ormally has the following implications: (a) PE must be accorded the same right as resident enterprises to deduct the trading expenses that are, in general, authorised by the taxation law to be deducted from taxable profits in addition to the right to attribute to the PE a proportion of overheads of the head office of the enterprise. Such deductions should be allowed without any restriction other than those imposed on the resident enterprise. (b) ... It is thus clear that according to the scope of this clause as explained by the OECD Commentary, includes the deduction on account of head office expenditure. In addition to the deduction of normal business expenditure of a PE as permissible under the domestic taxation laws, the deduction is also required to be allowed for a proportion of overheads of the head office and such a deduction is to be allowed without any restriction other than those imposed on the resident enterprise. This makes two things clear-(a) that the restriction on admissibility of expenditure in accordance with the domestic law is, according to the OECD Commentary, is in respect of the normal business expenditure incurred by the PE; and (b....
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....n is also placed on the resident enterprises, does constitute discrimination under Article 24. The taxation on a PE of a Canadian company, by the reason of placing a restriction on deduction of head office expenditure which is not applicable in the case of resident companies, does, therefore, constitute less favourable tax treatment in India than the taxation levied on Indian enterprise carrying on the same activities in India. Viewed in this perspective, it is clear that the limitation on deduction of head office expenditure, as stipulated by Section 44C of the Act, will be hit by the non-discrimination clause in the Indo-Canadian DTAA. In any event, on a plain reading of the provisions of the Article 24(2), we are of the considered view that a restriction on admissibility of head office overheads of PE of a Canadian company constitutes discrimination against such a PE visa-vis a domestic Indian entity because no such restriction is applicable for deduction of head office or controlling office overheads of an Indian entity. It puts PE of a Canadian company to an unfair disadvantage inasmuch as even legitimate business expenses attributable to the PE and deductible under Section 37....
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....nation, such legal provisions have to be treated as overridden by the provisions of the Indo-Canadian DTAA. There is no dispute about the fact that when the provisions of the IT Act and the DTAA are in conflict, the provisions of the Act will be applicable only to the extent the same are more beneficial to the assessee. In other words, the provisions of the treaty prevail over the provisions of the Act. Therefore, the restriction placed on the allowability of the head office expenditure by Section 44C of the Act is to be ignored in the light of the provision of Article 24(2) of the Indo-Canadian DTAA. 8. The next contention of the Revenue is that the provisions of Section 44C are not in the nature of restriction but provide only a fair method of allocation of head office overheads. It is also contended that in the absence of the provision of Section 44C, the head office expenses cannot be allowed at all for want of verification of expenses. We see no substance in this plea either. In the case of CIT v. Deutsche Bank AG (IT Ref. No. 139 of 1997, judgment dt. 24th July, 2003), upholding the action of this Tribunal, Hon'ble Bombay High Court held that in a case where Sect....
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....IT vs. Hindustan Housing and Land Development Trust Ltd (161 ITR 524) (ii). DIT vs. Credit Agricole Indosuez - 377 ITR 102 (Bom-HC) (iii). ACIT vs. Clough Engineering Ltd. - 130 ITD 137 (Del-SB) (iv). Avada Trading vs. ACIT 284 ITR (A.T.) 73 (Mum) (v). Bechtel International Inc vs. ADIT - 135 ITD 377 (Mum). (vi). International Global Networks BV vs. DDIT-50 SOT 433 (Mum) MISC Berhad vs. ADIT - 150 ITD 213 (Mum) 24. Ld. DR relied on the orders of the lower authorities. 25. Considered the rival submissions and material placed on record, we observe that Coordinate Bench in the case of Avada Trading v. ACIT (supra) considered the issue of "non taxability of interest on income tax refund" and adjudicated the issue. While deciding the issue, Coordinate Bench held as under: - "1. The Hon'ble President, Income-tax Appellate Tribunal has constituted this Bench for considering the following issue: Whether the interest payable to the assessee under Section 244A of the I.T. Act, on the tax refundable in the proceedings under Section 143(1)(a) of the Act, accrued to the assessee in the year of its receipt or in th....
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....ecision of Tribunal in the case of Saffron Trading Co. (supra). A query was raised whether provisions of Section 154 of the Act can be invoked in case interest is taxed in the year of receipt but varied under Section 244A(3). In response to the same, the Learned Departmental Representative did not respond but the learned Counsel for the assessee submitted that he has no objection if it is held that such assessment can be rectified under Section 154 of the Act. The hearing was concluded at this stage on 15-9-2005. 5. ...... 6. ....... 7. Rival contentions have been considered carefully. The question for consideration is whether interest under Section 244A granted to assessee in the proceedings under Section 143(1)(a) of the Act is taxable in the year of its receipt or in the year in which proceedings under Section 143(1)(a) attains finality. According to the charging provisions of Sections 4 and 5 of the Act, the income is chargeable in the year in which it is either accrued or received as the case may be. The issue regarding accrual of income is concluded by the judgment of the Hon'ble Supreme Court in the case of E.D. Sassoon & Co. Ltd. v. CIT , wher....
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....l be deemed to be a notice under Section 156 and the provisions of this Act shall apply accordingly. A bare look at the provisions of Sub-section (1) reveals that as soon as any refund becomes due under any provisions of the Act, the assessee becomes entitled to receive the interest in respect of such refund calculated in the manner provided in Clauses (a) and (b) of such provisions. Therefore, the moment the refund is granted, as enforceable debt is created in favour of assessee in respect of interest due on such refund. Consequently, income can be said to accrue on the date of refund itself. Therefore, when such interest is actually granted along with the refund then, in our opinion, the requirement of Sections 4 and 5 of the Act are fully satisfied and the same can be taxed in the year of receipt. 9. The main contention of the assessee's counsel is that such right is contingent as the interest so received can be varied or withdrawn after the assessment under Section 143(3). We are unable to accept such contention of assessee for the reasons given hereafter. According to the dictionary meaning, a right or an obligation can be said to be contingent when such ....
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....Court approved the view of the Hon'ble Madras High Court by observing that assessee had incurred an enforceable legal liability on and from the date on which he received the Collector's demand for payment and that his endeavour to get out of that liability by preferring appeals could not in any way detract or retard the efficacy of the liability which had been imposed upon him by the competent Excise authority. [Emphasis supplied] 11. The Hon'ble Supreme Court in the case mentioned in the earlier para, had to consider a case where sales tax authority had served a demand notice on assessee on 21-11-1957 for payment of sales tax of Rs. 1,49,776 in respect of sale effected during the financial year ended 31-12-1954 relevant to assessment year 1955-56 without claiming any deduction on account of such liability. However, subsequently revised return was filed on 9-11-1959 claiming the aforesaid deduction even though the said demand was objected to by the assessee before the higher authority. The ITO computed the assessment on 11-3-1960 denying the claim of assessee when appeal before the Sales Tax authority was pending. The claim of the assessee was also rejected ....
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....ed company offered to pay only Rs. 2,34,000. The assessee refused to accept the same and filed suit against the said company in the High Court of Bombay. The suit was decreed on 1711-1955, in the sum of Rs. 2,34,000 and the decree was affirmed in appeal. Assessee received the said amount in December 1955. In the income-tax proceedings for assessment year 1956-57, this amount was considered as business profits and consequently the Assessing Officer assessed the same in that year. The assessee challenged the same before the appellate authority on the ground that compensation became due to assessee in the year 1951 when its services were terminated and, therefore, could not be assessed in the assessment year 1956-57. The matter reached the Apex Court. The Hon'ble Supreme Court rejected the appeal of the revenue by observing as under: It was urged on behalf of the department that, as the assessee A disputed the quantum of compensation to which it was entitled, we must hold that its right to get the amount arose when the dispute was determined by the Hon'ble High Court. We are unable to accede to this contention. As mentioned earlier, the right of the assessee ....
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....e explained with an example. For instance, land in a village belonging to various persons is acquired by Government for some development works and the compensation is awarded by the Collector with interest, if any. But one of the land holders challenges the acquisition proceedings in the High Court and later on succeeds as the acquisition is declared illegal. By virtue of such High Court order, such compensation has to be returned and Government will have to restore the land to the villagers. Therefore, if capital gain has been assessed in the hands of some of the persons where lands were acquired, such assessment would become patently erroneous, as the basis itself has ceased to exist. Such assessment would, therefore, amount to mistake, which, in our opinion, can be rectified. Similarly, any income assessed may become non-taxable by virtue of retrospective amendment and consequently, erroneous assessment can be rectified. Therefore, in our humble opinion, if the interest granted under Section 244A(1) is varied under Sub-section (3) of such section, then the interest originally granted would be substituted by the reduced/increased amount as the case may be. Thus, income o....
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....esent facts and/or disturbed in appeal. Accordingly, Question 2 does not raise any substantial question of law to be entertained. ..... 6. Regarding Question 4 - (a) The Tribunal by the impugned order restored the issue of the rate at which interest is to be charged to tax on income-tax refund received under Section 244A of the Act to the Assessing Officer to be decided in the light of Indo-France DTAA and the decision of the Special Bench of the Tribunal in the matter of Assistant Commissioner of Income Tax vs. Clough Engineering Ltd. [130 ITD 137]. (b) The grievance of the Revenue is with the impugned order following the decision of the Special bench in Clough Engineering Ltd. (supra). (c) However we find that the decision in Clough Engineering (supra) of the Special Bench had been followed by the Tribunal in ITA No.183/Mum/2010 [M/s DHL Operations B.V., The Netherlands Vs. Dy. Director of Income Tax]. The issue before the Tribunal was the rate of tax on which Income tax refund is to be taxed i.e. on the basis of the Articles of DTAA or under the Act. The Tribunal on examination of the DTAA in the above case concluded that interest on ....
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....incurred on refurbishment of leasehold premises) be treated as revenue expenses and 25% of the expenditure be considered as capital expenses. There is no provision under the Act to estimate certain percentage of the total expenditure related to a particular asset as revenue expenditure or capital expenditure. The expenditure incurred in relation to any particular asset is either entirely on capital account or on revenue account. 5. The Appellant prays that the order of the ld. CIT (Appeals) on the above grounds be set aside and that of the Assessing Officer restored." 30. With regard to Ground No. 1 and 2 which are in respect of expenses incurred outside India comprising of (a) salaries of Expatriate employees (b) expenses incurred exclusively for operations in India and (c) NRI Desk expenses, Ld. AR brought to our notice that similar ground has been raised before the Coordinate Bench in ITA.No. 7891 and 9229/Mum/2014 for the A.Y. 1997-98 and the Coordinate Bench has considered and adjudicated the issue in favour of the assessee. Copy of the order is placed on record. 31. Ld. DR fairly agreed that the issue is covered in favour of the assessee. 32. Considered the ....
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.... Bench as referred to above, we uphold the decision of learned Commissioner (Appeals) on the issue. Ground is dismissed." 33. Similarly, the Coordinate Bench in assessee's own case for the Assessment Year 1994-95 in ITA.No. 1683/Mum/2003 dated 29.10.2007 held as under: - "11 Ground no.4 is against deleting the expenses incurred outside India Rs 14,61,83,854/ 12. The Assessing Officer disallowed the claim of the assessee by observing that expenses are incurred by assessee outside India which are directly related to the operations of the assessee in India, cannot be allowed in full as they are in nature of head office expenses deductible in accordance with and subject to limits rule 44C of the Act. It was submitted before CIT (A) that the expenses in question are directly related to the business operation in bank in India and hence fully allowable under the provisions of the Act. It was further submitted that article 7(5) of the DTAA between India and United Kingdom, provides that in the determination of the profits of a permanent establishment the expenses incurred by the assessee shall be allowed as deduction. Accordingly, it was submitted that these expenses a....
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.... exclusively for the purposes of the business shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession". The expenses in question incurred by the Appellant, though outside India, have been incurred for the purposes of business of the Appellant in India. The expenses are not of capital or personal in nature and therefore, allowable u/s. 37(1) of the Act. The Bombay ITAT in the case of American Bureau of Shipping (Supra) has held that expenses, which are specifically incurred on account of Indian branch, cannot be held to be in the nature of Head Office expenses u/s. 44C. Further expenses on expatriates' salaries are for the services rendered in India and these by no stretch of imagination can be considered and Head Office expenses falling under section 44C. These expenses are not incurred by the Appellant outside India in managing the affairs of any office outside India and therefore, no covered u/s. 44C. The allowability of these expenses is also squarely covered by the decision of the Calcutta ITAT in ABN AMRO Bank's case (supra). As far as the absence of debit in the books of accounts for these expenses is concerned, ....