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2023 (3) TMI 1296 - AT - Income TaxTP Adjustment - Addition with regard to payment of interest on CCDs by recharacterising the same to be external commercial borrowings - HELD THAT:- Respectfully following the decision of the coordinate bench of the Bangalore Tribunal A.Y. 2012-13 [2022 (2) TMI 1279 - ITAT BANGALORE] and A.Y. 2011-12 we uphold the TP study done by the assessee to arrive at the interest rate of 9% and 12% calculated based on the average rupee cost comparing the same with SBI prime lending rate. Adjustment made with respect to the payment of royalty at 1% - HELD THAT:- As per assessee own case [2021 (12) TMI 1167 - ITAT BANGALORE] we allow this ground in favour of assessee and hold the payment of royalty by assessee to be at arms length. Disallowance of expenditure u/s. 14A r.w.Rule 8D - as submitted by the Ld.AR that there is no exempt income earned by the assessee for year under consideration - HELD THAT:- We note that Coordinate Bench of this Tribunal for A.Y. 2012- 13 has deleted the disallowance u/s. 14A [2022 (2) TMI 1279 - ITAT BANGALORE] as assessee do not have any exempt income for the year under consideration. Thus, as there is no difference in facts, we direct the Ld.AO to delete the addition made u/s. 14A r.w.Rule 8D. MAT computation on addition u/s 14A - addition made to the books profits by applying the provisions of section 14A - HELD THAT:- This issue is no longer resintegra by virtue of the decision of ACIT vs. Vireet Investments Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] and the decision of Gokaldas Images Pvt. Ltd. [2020 (11) TMI 345 - KARNATAKA HIGH COURT] - Thus we direct the Ld.AO to delete the disallowance u/s. 14A while computing book profits u/s. 115JB of the Act. Short credit of TDS - HELD THAT:- We direct the Ld.AO to verify the same and consider the claim in accordance with law. Interest charged u/s. 244A - HELD THAT:- As submitted that the Ld.AO has not provided the consequential interest u/s. 244A - We direct the Ld.AO to verify the same and consider in accordance with law.
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