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2015 (10) TMI 2733 - AT - Income TaxInternational transaction - advances given by the assessee to its AEs in UK and USA - Held that:- ITAT, Cochin Bench in assessee’s own case for the assessment year 2008-09 is contrary to the assertions made by the assessee in support of the aforesaid ground. It has specifically dealt with the scope of expression “international transaction” as amended by Finance Act, 2012 retrospectively. It was held that the advances given by the assessee to its AEs in UK and USA came within the ambit of international transaction as per the amendment made in the provisions of section 92B of the Act. We are bound by the decision rendered by the previous Bench in assessee’s own case. There is no occasion for us to comment upon the correctness or otherwise of the judgments relied upon by the assessee as the case of the assessee is covered against the assessee by the Tribunal order dated 29/11/2013. Ground No. 1 raised by the assessee is dismissed. Erroneous imputing of interest on advances - Held that:- We are not in agreement with the submissions made by the Ld. AR. The Ld. AR has failed to bring on record any distinguishing feature between the present case and case of the assessee for the assessment year 2008-09. In the assessment year 2008-09, an identical issue came up for consideration before the ITAT, Cochin Bench in assessee’s own case wherein the assessee had charged interest at the rate of 5% on the advances made to its AE Suntec Germany and charged no interest on the advances made to its AEs in USA and UK. The Bench in para 9.4 (extracted above) held that commercial expediency cannot be a ground for not charging interest on the advances given to Suntec US and Suntec UK and upheld the charge of interest at the rate of 5% on the advances made to its AEs in USA and UK. Non-allowance of tax credit in the case of the assessee by the Revenue - The assessee has submitted that it was given a tax credit of ₹ 8,50,979/- only instead of ₹ 35,95,891/-. - The assessee has further given details of ₹ 27,44,912/- for which the tax credit were not given - Held that:- Assessing Officer is directed to grant tax credits due to the assessee in accordance with law as reflected in income tax records. Thus, Ground No. 3 is allowed for statistical purposes.
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