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2016 (10) TMI 1224 - AT - Income TaxApplicability of provisions of section 92A - relationship of AE between the Assessee Company and GLATIPL - Held that:- As per the explanation, amendment carried out in sub section (2) of section 92A by Finance Act, 2002 w.e.f. 01.04.2002, as reproduced by the tribunal in Para 11 reproduced above, mere participation of one or more persons in the management or control or capital of both the enterprises shall not make them AE unless the criteria specified in sub section (2) are fulfilled. We have seen that even as per the learned DR of the revenue, clause (j) of sub section (2) of section 92A is attracted but this claim is also devoid of merit because he could only point out that one director of the assessee company and of GLATIPL is common but this fact alone does not establish that the said common director is controlling GLATIPL when the said company is a subsidiary of ILSGL and the assessee company or its directors are not having any relationship with ILSGL or director of ILSGL. Hence, by respectfully following this tribunal order, we hold that since the parameters laid down in sub section (1) and (2) of section 92A are not fulfilled, there is no relationship of AE between the Assessee Company and GLATIPL and therefore, the provisions of Chapter X of I. T. Act have no application. Disallowance of Transportation charges - Disallowance of Expenses under Explanation to section 37 (1) and Addition made on account of sale of Land - Held that:- Hence in line with the tribunal order in A.Y. 2010 - 11 in assessee's own case, we delete first two disallowances i.e. (1) Disallowance of Transportation charges, and (2) Disallowance of Expenses under Explanation to section 37 (1) and in respect of third issue i.e. Addition made on account of sale of Land, we set aside the order of CIT (A) on that issue and restore the matter to A.O. for a fresh decision with same directions as were given by the tribunal in A. Y. 2010 - 11. Ground No. 6 is allowed in this manner.
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