The Tribunal held that salary paid to expatriates who were stationed in India working exclusively for the business operations of the Indian PE of the assessee, was allowable as business expenditure bang incurred wholly and exclusively for the Indian branch. It also held that no part of these expenses could be allocated to other branches. Accordingly, it was held that section 44C was not applicable.
Dy. DIT (IT) v. Bank of Tokyo-Mitsubishi, UFG Ltd. (2018) 61 ITR 272 (Delhi)(Trib.)
S. 44C : Non-residents – Head office expenditure – salary paid to expatriates who were stationed in India working exclusively for the business operations of the Indian PE of the assessee – Held allowance and that provision of S.44C is not applicable.