ABN AMRO Bank NV v. ADIT

M/S. Mashreq Bank Psc., Mumbai vs. DDIT (It) - 3(2), Mumbai

In the result, the appeal is allowed, as indicated above

Bench: Justice (Retd.) C. V. Bhadangshri Saktijit Dey & Ms. Padmavathy Sassessment Year: 2002-03

…taxmann.com 555 d) Decision of Mumbai Tribunal in case of DDIT (IT)-2(1) Vs. Toyo Engineering Corp. (2012) 136 ITD 268 e) Decision of Kolkata Special Bench in case of ABM Amro Bank N.V. Vs. ADIT (IT)-1 & ADIT (IT)-1 Vs. Bank of Tokyo Mitsubishi Ltd. (2005) 97 ITD 89 f) Azadi Bachao Andolan (132 Taxman 373) (SC) g) Decision of Jaipur Bench ITAT in the case of ITO vs. Degremont International (1985) (11 ITD 564) h) Decision of Mumbai, ITAT in case of Credit Llyonnais Vs. DCIT (2004) (ITA Nos. 6539 & 6701/Bom/95 i) Decision of Delhi ITAT in the case of DDIT Vs. Unocol Bharat Ltd. (ITA No.1388/Del/2012), dated…

ADIT (I.T)-3(2), Mumbai vs. M/S. the Bank of Nova Scotia, Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.6818/मुं/2006 ("न.व. 2002-03) The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ...... अपीलाथ"/Appellant बनाम Vs. Deputy Director Of Income Tax (International Taxation)-3(2), Scindia House, Ballard Pier, Mumbai 400 038. ..... ""तवाद"/Respondent आअसं.651/मुं/2007 ("न.व. 2002-03) Adit(It)-3(2),Mumbai R. No.132, 1St Floor, N.M.Road, Mumbai – 400 038. ...... अपीलाथ"/Appellant बनाम Vs. The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ..... ""तवाद"/Respondent

…assessee. The Assessing Officer held that Indian branch of the assessee was liable to deduct withholding tax on the interest payment. In first appellate proceedings, the CIT(A) following the decision of Special Bench in the case of ABN AMRO Bank NV vs. ADIT, 97 ITD 89 (Kol)(SB) held that interest payment made by the Indian PE to Head Office is not allowable as deduction. Thus, the CIT(A) upheld the disallowance but for the different reason. The Revenue in ground No.3 of appeal has assailed the findings of the CIT(A) in rejecting the reason given by Assessing Officer for making disallowance u/s. 40(a)(ia) of the…

M/S. the Bank of Nova Scotia, Mumbai vs. DDIT (I.T) - 3(20, Mumbai

In the result, appeal of the assessee is partly allowed

Bench: Shri Vikas Awasthy& Shri Amarjit Singh आअसं.6818/मुं/2006 ("न.व. 2002-03) The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ...... अपीलाथ"/Appellant बनाम Vs. Deputy Director Of Income Tax (International Taxation)-3(2), Scindia House, Ballard Pier, Mumbai 400 038. ..... ""तवाद"/Respondent आअसं.651/मुं/2007 ("न.व. 2002-03) Adit(It)-3(2),Mumbai R. No.132, 1St Floor, N.M.Road, Mumbai – 400 038. ...... अपीलाथ"/Appellant बनाम Vs. The Bank Of Nova Scotia, Mittal Towers, B-Wing, Nariman Point, Mumbai 400 020. Pan: Aaacb-1536-H ..... ""तवाद"/Respondent

…assessee. The Assessing Officer held that Indian branch of the assessee was liable to deduct withholding tax on the interest payment. In first appellate proceedings, the CIT(A) following the decision of Special Bench in the case of ABN AMRO Bank NV vs. ADIT, 97 ITD 89 (Kol)(SB) held that interest payment made by the Indian PE to Head Office is not allowable as deduction. Thus, the CIT(A) upheld the disallowance but for the different reason. The Revenue in ground No.3 of appeal has assailed the findings of the CIT(A) in rejecting the reason given by Assessing Officer for making disallowance u/s. 40(a)(ia) of the…

Deputy Comm. of Income Tax (It)-3(2)(2), Mumbai vs. M/S Mizuho Bank Limited, Mumbai

In the result the grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…ent entities as per the domestic law as well as DTAA, therefore, disallowed the interest payment for non-deduction of tax under Section 40(a) (ia). We found that issue is squarely covered by the decision of the ITAT Special Bench in the case of ABN Amro Bank, 97 ITD 89. Recently the issue is also dealt by the ITA No.3282/09, CO46/13 & ITA No 602/2013 7 ITAT Special Bench at Mumbai in the case of Sumitomo Mitsu Banking Corp. 136 ITD 66 (Mum)(SB), wherein it has been held interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. It was further held that t…

Deputy Comm. of Income Tax (It)-3(2)(2, Mumbai vs. M/S Mizuho Bank Limited, Mumbai

In the result the grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…ent entities as per the domestic law as well as DTAA, therefore, disallowed the interest payment for non-deduction of tax under Section 40(a) (ia). We found that issue is squarely covered by the decision of the ITAT Special Bench in the case of ABN Amro Bank, 97 ITD 89. Recently the issue is also dealt by the ITA No.3282/09, CO46/13 & ITA No 602/2013 7 ITAT Special Bench at Mumbai in the case of Sumitomo Mitsu Banking Corp. 136 ITD 66 (Mum)(SB), wherein it has been held interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. It was further held that t…

Deputy Comm. of Income Tax (It)-3(2)(2), Mumbai vs. M/S Mizuho Bank Limited, Mumbai

In the result the grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…ent entities as per the domestic law as well as DTAA, therefore, disallowed the interest payment for non-deduction of tax under Section 40(a) (ia). We found that issue is squarely covered by the decision of the ITAT Special Bench in the case of ABN Amro Bank, 97 ITD 89. Recently the issue is also dealt by the ITA No.3282/09, CO46/13 & ITA No 602/2013 7 ITAT Special Bench at Mumbai in the case of Sumitomo Mitsu Banking Corp. 136 ITD 66 (Mum)(SB), wherein it has been held interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. It was further held that t…

Deputy Comm. of Income Tax (It)-3(2)(2), Mumbai vs. M/S Mizuho Bank Limited, Mumbai

In the result the grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…ent entities as per the domestic law as well as DTAA, therefore, disallowed the interest payment for non-deduction of tax under Section 40(a) (ia). We found that issue is squarely covered by the decision of the ITAT Special Bench in the case of ABN Amro Bank, 97 ITD 89. Recently the issue is also dealt by the ITA No.3282/09, CO46/13 & ITA No 602/2013 7 ITAT Special Bench at Mumbai in the case of Sumitomo Mitsu Banking Corp. 136 ITD 66 (Mum)(SB), wherein it has been held interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. It was further held that t…

Deputy Commissioner of Income Tax (It)-3(2)(2), Mumbai vs. M/S Mizuho Bank Limited, Mumbai

In the result the grounds no

Bench: Shri Aby T Varkey & Shri Amarjit Singh

…ent entities as per the domestic law as well as DTAA, therefore, disallowed the interest payment for non-deduction of tax under Section 40(a) (ia). We found that issue is squarely covered by the decision of the ITAT Special Bench in the case of ABN Amro Bank, 97 ITD 89. Recently the issue is also dealt by the ITA No.3282/09, CO46/13 & ITA No 602/2013 7 ITAT Special Bench at Mumbai in the case of Sumitomo Mitsu Banking Corp. 136 ITD 66 (Mum)(SB), wherein it has been held interest paid by the Indian Branch of the assessee bank to its overseas head office is not chargeable to tax in India. It was further held that t…

DCIT (It) 2(1)(1), Mumbai vs. Credit Suisse Ag, Mumbai

In the result, appeal of the Revenue is dismissed and Cross

…assessee's claim for deduction on account of interest payable by its Indian branches to the head office was squarely covered against the assessee by the decision of Kolkatta Special Bench of ITAT in the case of ABN Amro Bank NV v. Asstt. DIT [2005] 98 TTJ 295/97 ITD 89 wherein it was held that identity of head office and the branch being same, there cannot be any expenditure in case of Indian branches for the interest payable to the head office. Following the said decision of the Tribunal in the case of ABN Amro Bank NV (supra), he held that interest payable by the Indian branches of the assessee bank to its head…

DCIT (It) 3(1)(1), Mumbai vs. Antwerp Diamond Bank Nv, Mumbai

In the result appeal filed by the revenue is dismissed

…in the hand of H.O. under the Income Tax Act and therefore not offered to tax as income of the H.O. The AO disallowed the same on the ground that the decision of the ITAT in the case of Mitsui Bank [35 TTJ 426] and ITAT, Calcutta in the case of ABN AMRO Bank [97 ITD 89] and also that the DRP has disallowed the same in AYs. 2006-07 & 2007-08 though the credit of TDS deducted of Rs. 1,21,04,206/- u/s. 195 of the Act was allowed which was deducted in terms of Circular No. 740, dt. 17-04-1996 @ 10% under Article 11(2) of Tax Treaty between India and Belgium. 3.1. At the outset, Ld. Counsel for the assessee submitted…

DCIT (It) 1(1)(2), Mumbai vs. Antwerp Diamond Bank Nv., Mumbai

In the result, appeals filed by the Revenue are dismissed in terms indicated hereinabove"

Bench: Shri Mahavir Singh, Jm & Shri G. Manjunatha, Am

…in the hand of H.O. under the Income Tax Act and therefore not offered to tax as income of the H.O. The AO disallowed the same on the ground that the decision of the ITAT in the case of Mitsui Bank [35 TTJ 426] and ITAT, Calcutta in the case of ABN AMRO Bank [97 ITD 89] and also that the DRP has disallowed the same in AYs. 2006-07 & 2007-08 though the credit of TDS deducted of Rs. 1,21,04,206/- u/s. 195 of the Act was allowed which was deducted in terms of Circular No. 740, dt. 17-04-1996 @ 10% under Article 11(2) of Tax Treaty between India and Belgium. 3.1. At the outset, Ld. Counsel for the assessee submitted…

DCIT (It) 3(2)(2), Mumbai vs. Mizuho Corporate Bank Ltd., Mumbai

The appeal of the revenue is dismissed

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm

…s. M/s Mizuho Corporate Bank Ltd. – A.Y. 2007-08 & 2008-09 same was in the nature of a payment to self. The A.O while concluding as hereinabove, took support of the order of the ‘Special Bench’ of the Tribunal in the case of ABN Amro Bank N.V. Vs. ADIT (2005) 97 ITD 89 (SB). Still further, the A.O held a conviction that as the source of the interest income earned by the head office was the latters branch office in India, thus the same as per Sec. 9(1)(v)(c) of the Act having deemed to have accrued or arisen in India, was therefore taxable in India as per the domestic law i.e. the Income Tax Act, 1961. It was furt…

DDIT (It) 1(2), Mumbai vs. Credit Lyonnais (Through Theri Successor Credit Agricole Corporate and Investment Bank ( Formerly Calyon Bank), Mumbai

The appeal of the Revenue is dismissed, the Cross Objection filed by the assessee is allowed

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K”, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER Asst.Director of Income Tax- (International Taxation)-(2), 119, Scindia House, Ballard Pier, Mumbai 400 038 ... Appellant Vs. Credit Lyonnais, (through their sucessors Credit Agricole Corporate And Investment Bank, (formerly Calyon Bank) 11th, 12th, 14th Floor, Hoechast House, Nariman Point, Mumbai 400 038 PAN : AAACC144J ...... Respondent C.O.NO.180/MUM/2011(Arising out of ITA No. 2714/MUM/2011, Assessment Year : 2003-04) Credit Lyonnais, Mumbai. ...Cross Objector V…