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2020 (3) TMI 571 - ITAT DELHITP Adjustment on notional interest on overdue receivables - HELD THAT:- As decided in own case [2019 (9) TMI 1200 - ITAT DELHI] Assessee is a debt free company and the question of receiving any interest on receivables did not arise - thus issue decided in favour of assessee. Corporate Tax Adjustment in relation to Tax Deducted at Source Reconciliation - AO noticed that there was mismatch between Form 26AS and tax credit claimed - HELD THAT:- Invoking of provisions of section 68 of the Act on the alleged difference in the revenue recognised by the assessee and Form 26AS statement is bad in law in as much as section 68 is not at all applicable on such difference. Secondly, we find that the DRP has given categorical finding that only the difference, if any, should have been added but we find that without going into the reconciliation statement, the Assessing Officer has made addition thereby disobeying the directions of the DRP - in the interest of justice and fair play, we restore this issue to the file of the Assessing Officer/TPO. AO/TPO is directed to examine the reconciliation statement mentioned elsewhere and when found correct, no addition is called for. TP Adjustment - comparable selection - HELD THAT:- Assessee is into ITES services thus companies functionally dissimilar with that of assessee need to be deselected from final list. Disallowance of the expenses on car lease rentals u/s 40(a)(ia) - HELD THAT:- There is no dispute that the assessee has paid car lease rentals amounting to ₹ 7,55,58,782/- and on such payments, provisions of section 40a(ia) of the squarely apply. However, the second proviso inserted to section 40a(ia) of the Act has been held to be declaratory and curative and have been given a retrospective effect from 1.4.2005 as held in the case of Ansal Land Mark Township [P] Ltd [2015 (9) TMI 79 - DELHI HIGH COURT] However, it is incumbent upon the assessee to furnish necessary evidences to demonstrate that the payees have shown receipts as their income - Restore this issue to the file of the Assessing Officer/TPO. The assessee is directed to furnish necessary evidences and the Assessing Officer/TPO is directed to examine the same and decide the issue afresh after giving reasonable opportunity of being heard to the assessee.
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