TMI Blog2018 (6) TMI 1619X X X X Extracts X X X X X X X X Extracts X X X X ..... he consistency with the earlier year, direct the AO to delete the addition. Addition u/s 14A read with rule 8D - HELD THAT:- No disallowance is attracted in respect of those investments which yielded no exempt income under the provision of section 14A read with rule 8D as has been held in the case of ACIT vs. Vireet Investment (P.) Ltd. [ 2017 (6) TMI 1124 - ITAT DELHI] . We, therefore, restore the issue back to the file of the AO with the direction to decide the same in the light of the ratio laid down by the special bench in the above case. - ITA No. 1475/Mum/2017 - - - Dated:- 8-6-2018 - SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For the Appellant : Shri Madhur Agrawal, A.R., Shri J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground No.1 is in respect of confirmation of addition of ₹ 63,45,801/- by the DRP as made by the AO/TPO in respect of corporate guarantee given by the assessee for availing loan by the associated enterprises. The TPO calculated the total arm length price of the guarantee fee at ₹ 1,90,37,404/- and after reducing the guarantee fee received by the assessee @1% from its AEs treated the balance amount of ₹ 63,45,801/- as adjustment under section 92CA as transfer pricing adjustment which is also confirmed by the DRP. 4. The Ld. A.R., at the outset, pointed out that the issue is squarely covered in its own case in favour of the assessee by the decision of Tribunal in ITA No.2035/M/2016 for A.Y. 2011- 12 in which it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the order passed by Tribunal in AY 2008- 09, we direct the Assessing Officer to restrict TP adjustment to 0.5% of average amount of loan outstanding during the year. In respect of counter guarantee given by the assessee for the guarantee given by IDBI Bank on behalf of Taj TV, we agree with the contentions of learned AR that non-fund based facility cannot be treated at par with the the fund based facility. We notice that in the M/s. Zee Entertainment Enterprises Limited case of Asian Paints (India) Ltd (supra), 0.20% has been held to be appropriate by the Tribunal. Accordingly, we direct the Assessing Officer to compute TP adjustment in respect of counter guarantee given at 0.20% of the amount of counter guarantee. 7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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