THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs STANDARD CHARTERED GRINDLAYS LTD

Judgment text excerpt

$~88 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 16.01.2025 + ITA 388/2019 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Indruj Singh Rai, SSC with Mr. Sanjeev Menon, Mr. Rahul Singh, JSCs, Mr. Anmol Jagga & Mr. Gaurav Kumar, Advs. versus STANDARD CHARTERED GRINDLAYS LTD .....Respondent Through: Ms. Shashi M. Kapila, Mr. Pravesh Sharma & Mr. Sushil Kumar, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR JUDGMENT YASHWANT VARMA, J. (Oral) 1. This appeal is directed against the order of the Income Tax Appellate Tribunal1 dated 30 November 2017 and came to be admitted on 15 April 2019 on the following question of law:- "i) Whether the ITAT erred in allowing the deduction claimed by the assessee in respect of the expenses incurred on soliciting and mobilization of foreign currency deposits from Non-Resident Indians on the assessee's Indian business in the backdrop of Section 44C of the Income Tax Act, 1961? 1 Tribunal ITA 388/2019 Page 1 of 17 Signature Not Verified Digitally Signed By:HARVINDER KAUR BHATIA Signing Date:24.01.2025 16:13:38 ii) Whether the Ld. ITAT erred in allowing the amount of Rs. 9.81 crores as expenditure on account of contribution to approved pension funds ignoring the provisions of Section36(l)(iv) and 40A(9) of the Act read with Rule 87 of the Income Tax Rules, 1962?" 2. Insofar as Question (i) is concerned and pertains to NRI expenses, learned counsels for parties are ad idem that the said issue would have to be answered in favour of the respondent /assessee in light of the order passed by us in Director of Income Tax vs. ANZ Grindlays Bank2 and where we had while dealing with this question held as follows:- “3. Insofar, as the aspect of ex