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| The Tax Publishers2020 TaxPub(DT) 0261 (Bom-HC) INCOME TAX ACT, 1961
Section 37(1) read with section 44C
Where assessee bank claimed expenditure under head 'NRI Deposit Mobilization' and claimed that no restrictions in terms of section 44C could be imposed, considering that Tribunal accepted assessee's claim and that in an identical situation for earlier assessment years, revenue did not carry matter to appeal before High Court due to lower tax effect, revenue's appeal was dismissed for relevant assessment year as well.
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Business expenditure - Expenditure under head 'NRI Deposit Mobilization' by assessee-bank - Applicability of section 44C on said expenses -
Revenue challenged order of Tribunal concurring with decision of CIT(A) deleting addition made by AO on NRI Mobilization expenses of Rs. 4,56,28,770 on basis of decision of Bombay High Court in case of Emirates Commercial Bank Ltd., 2003 TaxPub(DT) 1265 (Bom-HC). Revenue contended that facts of above case were entirely different from assessee's case, which were ignored while deciding issue. Held: Revenue contended that Tribunal failed to follow ratio in case of CIT v. Jansampark Advertising & Marketing (P.) Ltd. 2015 TaxPub(DT) 0992 (Del-HC) dt. 11-3-2015. Tribunal accepted view of the assessee relying upon decision in case of assessee itself for earlier AY 1989-90 and 1990-91. Assessee contended that in an identical situation for earlier assessment years, revenue had not carried the matters in appeal before the High Court. It was found that non-filing of appeals by revenue could not have been on the ground of low tax effect. Under the circumstances, decisions of revenue, not to challenge Tribunal's judgment in earlier years in respect of very same assessee, can be seemed as conscious decision of accepting proposition involved. Question was, therefore, not entertained.
REFERRED : Emirates Commercial Bank Ltd., 2003 TaxPub(DT) 1265 (Bom-HC); CIT v. Jansampark Advertising & Marketing (P.) Ltd. 2015 TaxPub(DT) 0992 (Del-HC) dt. 11-3-2015
FAVOUR : In assessee's favour
A.Y. :
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