Law:

Section:

Section 44C of the Income-tax Act, 1961 - Non-residents - Head office expenditure in case of - Assessment years 1977-78 and 1978-79 - Assessee-firm was a branch of a foreign company and was engaged in manufacturing of pharmaceutical products - It had a separate and independent research laboratory in India apart from research laboratory at its head office in UK- For relevant assessment years, it had claimed not only head office expenses at 5 per cent of total income, being expenses referred to under section 44C, but had also claimed proportionate expenses incurred towards laboratory expenses at its head office on ground that those expenses were not covered by section 44C - Assessing Officer rejected assessee's claim holding that said expenses were covered by section 44C - On appeal, Commissioner (Appeals) allowed assessee's claim holding that laboratory expenses were not connected with general and administrative expenditures covered by sub-clauses (a), (b), (c) and (d) of Explanation (iv) to section 44C - On revenue's appeal, Tribunal, in absence of details of laboratory expenses, had not reached to a final conclusion whether laboratory expenses were covered under section 44C or not and remanded matter to Commissioner (Appeals) for consideration as to whether laboratory expenses included any of expenditure mentioned in sub-clauses (a), (b), (c) and (d) of Explanation (iv) to section 44C - Whether on facts, Tribunal had taken a reasonable and rational view - Held, yes Circulars & Notifications : CBDT's Circular No. 202, dated 5-7-1976 FACTS The assessee-firm was a branch of a foreign company and was engaged in the manufacturing of pharmaceutical products. It had a separate and independent research laboratory in India. The head office of the assessee also had a research laboratory in the U.K. The assessee, after claiming head office expenses at 5 per cent of total income being expenses referred to under section 44C, had further claimed proportionate expenses incurred towards laboratory expenses at its head office on the ground that said expenses were not covered by section 44C. The Assessing Officer rejected the assessee's claim and held that the laboratory…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492