ITAT allows Hub Service Expenses

The Income Tax Appellate Tribunal, Mumbai, by its order dated 12 June 2026 in the case of JP Morgan Chase Bank, held that expenditure incurred towards centralized banking support services provided through overseas hub centres is deductible under Section 37(1) of the Income-tax Act. 

The Tribunal ruled that such expenses represent direct operational services essential for banking activities and cannot be equated with general head office expenditure governed by Section 44C.