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2017 (7) TMI 1347 - AT - Income TaxTP Adjustment - adjustment in respect of 'Guarantee Commission' - HELD THAT:- As decided in own case [2017 (4) TMI 1092 - ITAT MUMBAI] similar issue had been dealt by the tribunal and Guarantee Commission has been restricted to 0.50%. Accordingly, respectfully following the order of the tribunal, we direct the A.O. to restrict the TP adjustment to 0.5% p.a. We direct accordingly. It is pertinent to mention that no new guarantee were given to new AE during the year and the guarantee during the year was in continuation of the old guarantee only. Disallowance u/s.14A r.w.r. 8D - sufficiency of own funds - HELD THAT:- In the current year i.e. as on 31.3.2012, own funds amounted to ₹ 9595.60 cores as compared to Investments of ₹ 3146.76 crores in terms of the balance sheet of assessee placed at pg. 11 of the paper book. We, therefore, direct the AO to delete disallowance of interest. As during the year under consideration there is a decrease in investment as per the audited balance sheet placed on record. Investment as on 31.3.2011 was ₹ 39.66 crores, whereas as on 31.3.2011 it was ₹ 31.46 crores. However, there is increase in capital and free reserve as on 31.3.2012 as compared to capital reserves on 31.3.2011. Under these facts and circumstances, relying on the decision of the Hon’ble Jurisdictional High Court in the case of Reliance Utilities [2009 (1) TMI 4 - BOMBAY HIGH COURT] we can reasonably presume that investment was out of own funds and no disallowance of interest is warranted. Disallowance of administrative expenses u/s. 14A r.w.r. 8D(2)(iii) - Hon’ble ITAT [2017 (4) TMI 1092 - ITAT MUMBAI] has set-aside the matter to ld. AO with the directions to exclude investments giving taxable income and strategic investments and also to verify the working of disallowance under Rule 8D(2)(iii) in light of various judicial propositions - issue restored back to the file of the AO for deciding afresh in terms of the direction given by the tribunal in order dated 24.02.2017. We direct accordingly. Disallowance u/s. 14A to the book profit u/s.115JB - Restrict the addition u/s.15JB to the extent of disallowance of administrative expenses worked out in terms of direction given by the tribunal [2017 (4) TMI 1092 - ITAT MUMBAI] Bogus purchases - HELD THAT:- Shri Suresh A. Parekh has confirmed that he had procured materials for Videocon Industries Ltd. and delivered the same at 14, KM Aurangabad. This confirmation was for the financial years 2008-09 to 2011-12. The facts and figures given for FY 2011-12 amounting to ₹ 59,09,78,823/- are pertaining to the issue, i.e., AY 2012-13. We further found that an affidavit was also given by Shri Suresh A. Parekh for FYs 2008-09 to 2011-12. All these were examined by the tribunal and thereafter reached to the conclusion as reproduced above. Under these facts and circumstances, we can reasonably follow the decision of the tribunal for deleting the addition made on account of bogus purchases.
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