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2022 (7) TMI 1417 - ITAT BANGALOREDisallowance of depreciation on assets given under finance lease - ownership status of Cisco Capital in relation to the assets leased out by it under finance lease, thereby disallowing the claim for depreciation made by Cisco Capital in the return of income - HELD THAT:- We are of the opinion that similar issue came for our consideration before this Tribunal in assessee’s own case for assessment year 2016-17 [2021 (11) TMI 1155 - ITAT BANGALORE] set aside the issue to the file of the AO for fresh adjudication in accordance with law. The assessee is directed to produce copies of those agreements which the AO may call for. The AO shall examine these agreements and if the terms & conditions mentioned in these agreements are similar to the terms and conditions mentioned in the agreements considered by the Hon’ble Supreme Court in the case of ICDS Ltd. [2013 (1) TMI 344 - SUPREME COURT] and if there are no material variations in the contracts, then depreciation has to be granted to the assessee as claimed. TP Adjustment - adjustment alleging payment made towards administrative support services to Cisco Systems India Pvt. Ltd. as an international transaction u/s 92B - HELD THAT:- Similar issue came for consideration before this Tribunal in assessee’s own case for the assessment year 2016-17 [2021 (11) TMI 1155 - ITAT BANGALORE] as hold that the issue of administrative and marketing support services is part of the operating cost and no separate adjustment is warranted. These grounds of assessee are partly allowed for statistical purposes. Interest on outstanding receivables - TPO has concluded that the receivable transaction should be treated as a separate international transaction and given the delay in receipt of receivables from AE’s - TP order, passed and adopted SBI PLR rate of 14% as computed interest on delayed receivables - HELD THAT:- Similar issue came for consideration before this Tribunal in the case of Swiss Re Global Business Solutions India Pvt. Ltd [2022 (1) TMI 1275 - ITAT BANGALORE], thus we direct the AO to consider the interest rate in terms of LIBOR and it would be appropriate to take the applicable rate of LIBOR + 2% and directed accordingly.
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