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2023 (10) TMI 1135 - ITAT AHMEDABADTP Adjustment on notional interest on advances - HELD THAT:- The issue has already been decided against the assessee for A.Y. 2012-13 [2022 (7) TMI 888 - ITAT AHMEDABAD] holding that advances were not in the nature of quasi capital. The main argument of the assessee against the transfer pricing adjustment made on account of the short term advances given to its subsidiaries in Mauritius and Nigeria, fails. The assessee being unable to demonstrate that the advances were not in the nature of loan/advance but were quasi capital in nature and for commercially expedient purposes of the assessee and hence the LIBOR rate could not be applied to them for the purposes of making ALP adjustment on the interest to be charged, the decision of the Ahmedabad Bench in the case of Micro Inks Ltd. is not applicable to the assessee - Decided against assessee. Disallowance u/s 14A - strategic investment made in SPV - HELD THAT:- As relying on own case for A.Y. 2012- 13 [2022 (7) TMI 888 - ITAT AHMEDABAD] assessee seeking exclusion of strategic investments while computing disallowance as per Rule 8D of the Rules is dismissed. TP Adjustment on Liason Support Services - company has benchmarked the transaction by applying CUP as MAM using US Census Bureau annual data relating to commission on sales made by agents, wherein the rate determined was at 4.1% - TPO made downward adjustment by applying rate of 2% instead of 3% following the order for A.Y. 2012-13 - HELD THAT:- The issue is decided in favour of the assessee in A.Y. 2012-13 [2022 (7) TMI 888 - ITAT AHMEDABAD] wherein it is held that the assessee has applied appropriate comparables for determining the ALP and benchmarking the transaction. TPO has selected the comparables which are functionally different from the assessee. Decided against revenue. Nature of receipt - profit on sale of carbon credit - capital receipt or revenue receipt - HELD THAT:- Issue is decided in favour of the assessee in A.Y. 2012-13 & 2013-14 [2022 (7) TMI 888 - ITAT AHMEDABAD] as held CER receipts as capital in nature and income earned there from also being capital receipt.
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