Section 44C Inapplicable to Exclusive Head Office Expenses for Indian Branches Abroad

Mashreq Bank Psc Vs DCIT (ITAT Mumbai) ITAT Mumbai held that head office expenditure incurred outside India exclusively for the Indian branches does not fall within the ambit of section 44C of the Income Tax Act. Accordingly, appeal of the assessee allowed. Facts- The assessee is a non-resident banking company incorporated in United Arab Emirates (UAE) and operates in India through its branches in Mumbai and New Delhi. In course of assessment proceeding, the AO noticed that the assessee had stated that it has not claimed any deduction on account of head office expenses, since, it has returned ...