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2019 (4) TMI 1761 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - HELD THAT:- As the assessee had not earned any exempt dividend income during the year under consideration, thus no disallowance under Sec.14A could have been made in its hands. We thus delete the disallowance made by the A.O under Sec.14A of the I.T Act. The Ground of appeal No. 1 is allowed. Deduction under Sec.10AA - Part disallowance - HELD THAT:- As the provisions of Sec.10AA are pari materia to those envisaged in Sec.10A, therefore, the view taken by Tribunal in the assesses own case for the aforementioned preceding years i.e A.Y. 2004-05 and A.Y. 2005-06 squarely covers the issue under consideration in favour of the assessee. Apart there from, we find that the contention advanced by the assessee before us that the profits of STP units are not liable for adjustment against the loss of non-STP units for the purpose of quantifying the claim of deduction under Sec.10AA is also supported by the view taken in the case of CIT Vs. Black & Veatch Consulting Pvt. Ltd. [2012 (4) TMI 450 - BOMBAY HIGH COURT] . Lower authorities had erred in disallowing part of the assesses claim of deduction under Sec.10AA by wrongly aggregating the income and loss of various units while quantifying its entitlement towards deduction under Sec.10AA of the I.T Act. In terms of our aforesaid observations, we vacate the disallowance under Sec.10AA Rectification of mistake - short credit of TDS - HELD THAT:- We find that the assessee is stated to have also filed a rectification application dated 14.02.2017 with the A.O, requesting him to rectify the error apparent on record as regards allowing of short credit of TDS. We are of the considered view that the said claim of the assessee as regards the failure on the part of the A.O to allow credit of TDS of ₹ 21,13,229/- would require verification on facts. Be that as it may, in all fairness we direct the A.O to look into the said claim of the assessee, and in case if the same is found to be in order, then allow the credit for the deficit amount TDS. We thus in terms of our aforesaid observations restore the issue as regards allowing of short credit of TDS to the file of the A.O. The Ground of Appeal raised by the assessee is allowed for statistical purposes. Increasing of the “book profit‟ by the amount of disallowance worked out under Sec.14A r.w. Rule 8D - HELD THAT:- We find ourselves to be in agreement with the ld. A.R that the disallowance worked out under Sec. 14A is not to be considered while computing the “book profit‟ under Sec.115JB of the I.T Act. In fact, the said issue is squarely covered in favour of the assessee by the decision of Vireet Investments (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] . We thus are of the considered view that the A.O had erred in increasing the “book profit‟ under Sec.115JB by the amount of the disallowance worked out in the hands of the assessee under Sec.14A r.w. Rule 8D. In terms of our aforesaid observations we vacate the observations of the lower authorities in context of the issue under consideration TP Adjustment - HELD THAT:- Assessee had gone for an “Advance Pricing Agreement” (“APA‟) which had been finalised on 08.01.2019. As per the APA the “guarantee commission‟ had been settled @ 0.73% and the assessee is stated to have already offered the incremental amount to tax in terms of the modified return of income filed pursuant to signing of the APA. As submitted by the ld. A.R, in the backdrop of the aforesaid facts the grounds of appeal no. 6 and 7 raised by the assessee before us in context of the TP adjustment on account of “guarantee commission‟ would no more survive and would resultantly be rendered as infructuous. Levy of interest under Sec. 234D is consequential to our aforesaid adjudication on the substantive issues
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