2025 (9) TMI 718

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....taining to AYs 2015-16 & 2016-17. 2. Since common issues are involved in both the appeals they were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. We have heard the representatives on the facts of ITA No. 1840/Mum/2025 for AY 2015-16. 4. Briefly stated the facts of the case are that the assessee is engaged in the business of banking and is a branch of Barclays Bank Plc, U.K. The AO was in possession of the information about remittances made outside India to Barclays UK during FY 2014-15 i.e., AY 2015-16. A perusal of the details of remittances, the AO was of the opinion that the assessee has made remittances on account of 'fees for technical services' on account of Derivatives S....

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....rom Barclays UK. Thus, Barclays India pays as well as receives DSC. 1.1. As per the global policy of Barclays Group, all the payments and receipts of DSC are routed through Barclays Bank Pic, UK, being head office. For the given nature of activity carried out, the settlement process (i.e. receipts/payments) is conducted through Barclays UK being the head office. Accordingly, for administrative purposes, Barclays Bank Plc, UK acts as a centralized entity to collect and distribute the DSC to various branches for the activities undertaken by them......" "2. Methodology of computing DSC 1.1. In relation to the methodology of calculation of DSC, we wish to submit that the revenue in the books of Barclays UK (being the ....

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....erable/ recovered subsequently). 1.1. Separately, during early 2016, an independent internal investigation/review of the DSC payment process was undertaken by Barclays India. Pursuant to the internal investigation/ review it was observed by Barclays India that on account of certain system inconsistencies/errors (being incorrect mapping of legal entities) Barclays India had inadvertently made excess payments which have been recovered subsequently...." 4.2. The underlying facts in the issue simply explained is that Barclays Bank U.K. and Barclays Bank, India are catering services to their respective clients. The clients of Barclays Bank, U.K. want to indulge in derivatives trading in Indian companies and for that they approached B....