2024 (10) TMI 185

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....SC with Mr. Shivansh Pandya, Mr. Utkarsh Tiwari, Advs. Mr. Sanjeev Menon, Mr. Rahul Singh, JSCs & Mr. Anmol Jagga, Adv for Mr. Indruj Rai, SSC. For the Respondent Through: Ms. Shashi Kapila, Mr. Pravesh Sharma, Mr. Sushil Kumar & Mr. Siddharth Kapila, Advocates. ORDER CM APL. 54260/2023 (400 days delay in re-filling) in ITA 584/2023 CM APL. 54354/2023 (400 days delay in re-filling) in ITA 587/2023 CM APL. 54436/2023 (400 days delay in re-filling) in ITA 589/2023 Bearing in mind the disclosures made, the delay of 400 days in re-filing the appeals is condoned. All these applications shall stand disposed of. ITA 563/2007, ITA 566/2007, ITA1296/2007, ITA 1297/2007, ITA 1300/2007, ITA 1344/2007, ITA 615/2009, ITA 629/2009....

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....24.10.2008 1996-97 NRI credit cards ITA 496/2018 18.08.2006 1997-98 Allowability of NRI Expenses, Deduction u/s 36 (1) (viiia) ITA 953/2018 23.02.2001 1998-99 NRI Expenses and credit card commission ITA 1025/2018 22.12.2011 2002-03 NRI Expenses and credit card commission ITA 387/2019 30.01.2006 1997-98 NRI Expenses and credit card commission ITA 388/2019 30.01.2006 1997-98 NRI Expenses and Deduction of payment to approved pension fund ITA 584/2023 26.04.2006 1999-20 NRI Expenses and credit card commission ITA 587/2023 28.04.2006 2000-01 NRI Expenses and credit card commission ITA 589/2023 11.07.2008 2001-02 NRI Expenses and credit card comm....

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....m NRI's and for advertising and explaining the RBI Circulars, the tenure of NRI Deposits I Interest Rates etc. This entire business was managed and controlled from India in accordance with RBI guidelines and was totally and entirely India-centric. Therefore, it was claimed that such expenses were legitimately allowable in the computation of Indian business income. These foreign currency deposits were then deployed in India at the various retail branches of the Bank across the country. The bank's deposit base in foreign currency deposits increased and this furthered its capacity to lend in foreign currency to borrowers within India. The interest income earned there from was offered for tax within India. Regarding the point that this ....

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....d subsequently been reversed by the Supreme Court in 240 ITR 355 (SC), Reliance was placed on Article 7 of the Indo-Australian Double Taxation Avoidance Treaty under which the Business Profits of Permanent Establishment (PE) in India were to be computed. Under Article 7 of the aforesaid Treaty the profits of a PE carrying on business in India were to be computed as if it were a distinct and separate enterprise. Therefore, these expenses which directly and exclusively related to the business in India, should be rightfully allowed as a deduction in the computation of the Indian "Business Income", since the profits of the Permanent Establishment were offered for tax in India. 7.4 We have carefully considered the rival submissions: The....

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....this aspect and while disposing of the appeals pertaining to Assessment Year ["A.Y."] 1996-97 observed thus: - "48. We have considered the rival submissions. We are in agreement with the finding of the learned CIT(A). Where the foreign branch has issued credit card and even if the transaction takes place in India, the credit is given to the customer outside India and the debt has also arisen outside India. The merchant shipment in India may receive the payment but the merchant shipments do not incur any debt. They merely receive charges for the goods sold or services rendered. However, the charges are received by the foreign branch for providing credit to their card holders outside India. The amount payable by the card holders who ....