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2023 (3) TMI 1203 - ITAT HYDERABADTP Adjustment - ALP adjustment towards Corporate Guarantee - TPO in the instant case has adopted the corporate guarantee commission rate of 1.80% on account of the corporate guarantee provided by the assessee to its AE and accordingly suggested upward adjustment - HELD THAT:- Respectfully following the decision of the Tribunal in assessee’s own case in the preceding A.Ys and in absence of any distinguishable features brought to our notice against the order of the Tribunal in assessee’s own case [2022 (4) TMI 1514 - ITAT HYDERABAD] we direct the Assessing Officer/TPO to adopt the corporate guarantee commission rate of .5% qua the extent of amount of assessee’s corporate guarantee actually utilized. The grounds raised by the assessee on this issue are accordingly allowed for statistical purposes. Addition on account of interest on outstanding receivables - As submitted that since the AO in the final order has not followed the directions of the DRP, therefore, he has no objection if the matter is restored to the file of the AO with a direction to compute the interest on receivables after netting off payables - HELD THAT:- Since the AO in the instant case has not followed the direction of the ld.DRP, therefore, the grounds on this issue are restored to the file of the Assessing Officer with a direction to follow the directions of the DRP and make appropriate addition. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- DRP upheld the action of the AO in the draft assessment order holding that the disallowance under section 14A r.w.Rule 8D is mandatory in nature irrespective of earning or not earning any exempt income. Assessee submitted that he has not earned any exempt income during the year. All these investments are made outside India in assessee’s subsidiary companies, the income of which when received is taxable in India. A perusal of the order of the AO & DRP shows that the same is very cryptic on this issue. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to adjudicate the issue afresh. Addition towards duty drawback - HELD THAT:- Since the assessee had not provided the necessary details with supporting evidence, the AO in the instant case made the addition. Since it is the contention of the learned Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate that the duty drawback has already been offered to tax as business income, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to grant one last opportunity to the assessee to substantiate its case and decide the issue as per fact and law. Ground raised by the assessee on this issue are accordingly allowed for statistical purposes.
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