The Commissioner Of Income Tax v. American Express Bank Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPLICATION NO.80 OF 1999 The Commissioner of Income Tax,Vs.American Express Bank Ltd. ..Appellant ..Respondent Mr.Parag Vyas for the Appellant.Mr.P.J.Pardiwala for the Respondent. P.C. CORAM :- DR.S.RADHAKRISHNAN &S.J.KATHAWALLA, JJ.DATE : 18TH JULY, 2008 1.Heard the learned Counsel for the parties. 2.By this Application, the Applicant is seeking a reference with regard to the following substantial question of law: 1.Whether on the facts and the circumstancesof the case, the ITAT was right in law indeleting the addition of Rs.30,64,005/- made bythe A.O. on account of memorandum interest? 2.Whether on the facts and the circumstancesof the case, the ITAT was right in law in holdingthat head office expenses directly incurred athead office on behalf of Indian branches do notfall under Section 44C of the Act and aredeductible under Section 37(1) of the Act? 3.Whether on the facts and the circumstancesof the case, the ITAT was right in law inholding head office expenses allocated to Indianbranches are allowable in full to the extentallowable to income from interest on securitiesas the restriction under Section 44C isapplicable only to income under the head profits and gains of business not to the head "Intereston securities". 3.We have perused the judgment of the Tribunal Tribunal on the very same questions of law for the earlier assessment year 1984-85. 4.In view thereof, we are not inclined to entertain the above Application and the same stands dismissed. (S.J.KATHAWALLA,J.) (DR.S.RADHAKRISHNAN,J.)