DCIT (IT) 3(2)(2), MUMBAI vs. MIZUHO CORPORATE BANK MAKER, MUMBAI

ITA 2711/MUM/2017Status: DisposedITAT Mumbai24 August 2022AY 2010-1120 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the issue of taxability of interest income had been decided in favour of the assessee by a coordinate bench in prior years. Regarding commission on guarantees, the Tribunal found that the CIT(A)'s method of adding 10% lacked basis and directed a re-computation based on comparable international transactions.

What were the facts?

The assessee, Mizuho Bank Ltd., a Japanese bank with Indian branches, had interest income received by its head office from its Indian branch. The Assessing Officer treated this interest as taxable in India and also made additions regarding commission on guarantees. The CIT(A) allowed the appeal on the interest issue and directed re-computation of commission rates.

What were the issues?

Whether interest paid by an Indian branch to its foreign head office is taxable in India, and whether the method adopted for determining the arm's length price of commission on guarantees was appropriate.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(3),Section 163(1)(c),Section 40(a)(i),Section 92C

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(3)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI PRAMOD KUMAR, & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Madhur Agarwal
For Respondent: Shri K.C. Selvamani

PER SANDEEP SINGH KARHAIL, J.M.

The present cross appeals have been filed by the assessee and the Revenue challenging the separate orders of eve

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 144C(3)

All 595 judgments and leading authorities on Section 144C(3) →

Recent GST High Court judgments

Search GST case law →