DIRECTOR OF INCOME TAX (IT)-I, MUMBAI vs. M/S. AMERICAN EXPRESS BANK LTD

C.A. No.-008291-008291 - 2015Supreme Court2025 INSC 143115 December 2025Bench: HON'BLE MR. JUSTICE J.B. PARDIWALA56 pages
For Petitioner: MADHULIKA UPADHYAY
AI SummaryRemanded

What did the Supreme Court hold?

The Supreme Court held that Section 44C applies to all 'head office expenditure', whether common or exclusive, and that the definition of 'head office expenditure' requires satisfying a tripartite test.

What were the facts?

The assessee, a non-resident banking company, claimed deductions for expenses incurred at its head office for Indian branches. The Assessing Officer disallowed these expenses beyond the ceiling specified in Section 44C of the Income Tax Act, 1961.

What were the issues?

Whether Section 44C of the Income Tax Act, 1961, applies to exclusive head office expenditure incurred for Indian branches, and whether the expenditure meets the statutory definition of 'head office expenditure'.

Which sections of the Income-tax Act were involved?

Section 44C,Section 37(1)

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Cause title — parties, addresses and appearances
2025 INSC 1431 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 8291 OF 2015 DIRECTOR OF INCOME TAX (IT)-I, MUMBAI. …APPELLANT VERSUS M/S. AMERICAN EXPRESS BANK LTD. …RESPONDENT WITH CIVIL APPEAL NO. 4451 OF 2016

J U D G M E N T

Civil Appeal Nos 8291 of 2015 & 4451 of 2016 J.B. PARDIWALA, J.

For the convenience of exposition, this judgment is divided into the following parts: INDEX A. Factual Matrix ....................................................................... 2 (i) Civil Appeal No. 8291 of 2015 ........................................................ 2 (ii) Civil Appeal No. 4451 of 2016 ........................................................ 5 B. Relevant Provisions ............................................................... 8 C. Submissions on behalf of the appellant .................................. 9 D. Submissions on behalf of the respondents ........................... 14 E. Issue to be determined .......................

The order continues below.

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