Allowing the appeal of the assessee the Tribunal held that anon- resident assessee is entitled to claim deduction of an amount equal to 5% of the adjusted total income as expenditure in the nature of Head Office (HO) Expenses. The fact that the expenses are not debited in the Profit & loss account or the books of account is irrelevant. The entries in the books of account are not conclusive.(ITA Nos.6561 & 6562/Del/2016, dt. 31.05.2018)(AY. 2012-12, 2013-14)
Ernst & Young Ltd. v. ACIT (IT) (2018) 94 taxmann.com 227 ( Mum) (Trib), www.itatonline.org
S. 44C: Non-residents – Head office expenditure -A non- resident assessee is entitled to claim deduction of an amount equal to 5% of the adjusted total income as expenditure in the nature of Head Office (HO) Expenses. The fact that the expenses are not debited in the Profit & loss account or the books of account is irrelevant. The entries in the books of account are not conclusive [ S.145 ]