HO Expenses Remanded

The Mumbai Bench of the Income Tax Appellate Tribunal remanded the issue of deduction of head office expenses incurred by a foreign bank for fresh examination in light ofthe Supreme Court's landmark ruling on Section 44C of the Income-tax Act. 

The Tribunal held that there can be no distinction between common and exclusive head office expenditure for the purpose of Section 44C. 

However, before applying the statutory limitation, the tax authorities must determine whether the expenditure satisfies the statutory definition of "head office expenditure" by applying the specific tests laid down by the Supreme Court.