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2017 (1) TMI 1519 - AT - Income TaxTP adjustment with regard to Corporate Guarantee [CG] - Held that:- Hon’ble Bombay High Court in CIT Vs. Everest Kento Cylinders Ltd. (2015 (5) TMI 395 - BOMBAY HIGH COURT) has affirmed guarantee adjustment of 0.50% as upheld by the Tribunal. In various other judicial pronouncements, CG has been benchmarked in the range of 0.20% to 0.50%. Therefore, keeping in mind the overall facts and circumstances of the case, we restrict TP adjustment against bank guarantee to 0.50% on CG given by the assessee. Also adjustment has to be calculated on Gross value of CG provided by the assessee. We direct so. This ground is partly allowed. Disallowance of Interest u/s 36(1)(iii) - proof of commercial expediency - Held that:- Once it is established that there was nexus between the expenditure and the purpose of the business which need not necessarily be the business of the assessee itself, the revenue cannot justifiably claim to put itself in the armchair of the businessman or in the position of the Board of Directors and assume the role to decide how much s reasonable expenditure having regard to the circumstances of the case. No businessman can be compelled to maximize his profits. The IT authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. The authorities must not look the matter from their own viewpoint but that of a prudent businessman. - Additions deleted - Decided in favour of assessee. Grant of TDS credit & Refund - Held that:- AR has stated that the assessee is entitled for full TDS credit on the strength of physical TDS certificates. Therefore, reiterating the stand of DRP and following Hon’ble Bombay High Court judgment in Yashpal Sahni Vs. Rekha Hajarnavis (2007 (7) TMI 7 - HIGH COURT , BOMBAY) DCIT is directed to grant full TDS credit of ₹ 1,64,11,584/- after verifying the physical TDS certificates and grant refund, to which assessee is entitled. Both grounds of assessee’s appeal stand allowed for statistical purposes.
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