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2. We take note of the common chart handed over by Ms. Kapila learned counsel appearing for the respondents where common questions of law regarding the allowability of NRI expenses with respect to Section 44C of the Income Tax Act ["Act"] and credit card commission arise. That chart is reproduced below:

ITA No. Date of Assessment Issues/Questions of Law impugned Year (AY) order ITA 18.08.2006 1995-96 Allowability of NRI 563/2007 expenses ITA 18.08.2006 1994-95 Allowability of NRI 566/2007 expenses ITA 12.01.2007 1992-93 Allowability of NRI This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2024 at 20:37:07 1296/2007 expenses ITA 19.01.2007 1995-96 Allowability of NRI 1297/2007 expenses ITA 12.01.2007 1993-94 Allowability of NRI 1300/2007 expenses ITA 12.01.2007 1993-94 Allowability of NRI 1344/2007 expenses ITA 24.10.2008 1996-97 NRI Expenses and credit 615/2007 card commission ITA 24.10.2008 1996-97 NRI credit cards ITA 18.08.2006 1997-98 Allowability of NRI 496/2018 Expenses, Deduction u/s 36(1)(viiia) ITA 23.02.2001 1998-99 NRI Expenses and credit 953/2018 card commission ITA 22.12.2011 2002-03 NRI Expenses and credit 1025/2018 card commission ITA 30.01.2006 1997-98 NRI Expenses and credit 387/2019 card commission ITA 30.01.2006 1997-98 NRI Expenses and 388/2019 Deduction of payment to approved pension fund ITA 26.04.2006 1999-20 NRI Expenses and credit 584/2023 card commission ITA 28.04.2006 2000-01 NRI Expenses and credit 587/2023 card commission ITA 11.07.2008 2001-02 NRI Expenses and credit 589/2023 card commission

7.3 The assessee's counsel explained that the Indian branches of the assessee bank had opened off-shore NRI counters outside India to obtain foreign currency deposits/funds from Non-Resident Indians (NRls). The country was passing through a balance of payments crises and urgently needed foreign exchange into the country the RBI had issued circulars giving foreign currency deposits of NRI's a favourable rate of interest as against LIBOR rates of interest. Such expenses were incurred recently for marketing the Resurgent Bonds after the nuclear explosion in India to obtain the necessary foreign exchange. For that, counters were opened outside India for soliciting and mobilizing foreign currency deposits from NRI's and for advertising and explaining the RBI Circulars, the tenure of NRI Deposits I Interest Rates etc. This entire business was managed and controlled from India in accordance with RBI guidelines and was totally and entirely India -centric. Therefore, it was claimed that such expenses were legitimately allowable in the computation of Indian business income. These foreign currency deposits were then deployed in India at the various retail branches of the Bank across the country. The bank's deposit base in foreign currency deposits increased and this furthered its capacity to lend in foreign currency to borrowers within India. The interest income earned there from was offered for tax within India. Regarding the point that this expenditure was in the nature 'head office expenses', it was submitted that 'Head Office expenses' as defined in section 44C referred to 'executive and general administration expenditure. Special expenses for soliciting foreign currency deposits from NRI customers were not in the nature of "executive and administrative"