Interest from HO & Overseas Branches Not Taxable as Self-Income: ITAT Mumbai

Barclays Bank PLC Vs ACIT (ITAT Mumbai) The appeals and cross-objections for Assessment Years 1998-99, 1999-2000 and 2000-01 involved multiple issues relating to the taxability of interest, disallowance of expenditure, applicability of Section 14A, broken period interest, levy of interest under Section 234B, and maintainability of departmental appeals and cross-objections. The principal issue concerned the taxability of interest earned by the Indian permanent establishment (PE) of a non-resident bank from Nostro accounts, placements with its head office and overseas branches, and placements wi...