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2018 (1) TMI 1564 - AT - Income TaxTP adjustment in respect of “interest on loans to AEs” and on account of “corporate guarantee” - CIT-A deleted the addition - HELD THAT:- As decided in own case [2017 (12) TMI 1745 - ITAT AHMEDABAD] impugned CIT(A)’s order, he has merely followed his order for the assessment year 2008-09 which has not been challenged, on this point, by the Revenue authorities. Learned Departmental Representative does not dispute this fact. In the light of the above factual position, it is clear that once the Revenue authorities accept the stand of the CIT(A) on an issue and allow it to reach finality in one assessment year, it cannot be open to them to challenge the same in the subsequent assessment year. As noted by Hon’ble Supreme Court, in the case of CIT vs. Radhasoami Satsang 1991 (11) TMI 2 - SUPREME COURT, while “strictly speaking, res judicata does not apply to income tax proceedings”, “where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not at all be appropriate to allow the position to be changed in a subsequent year - Thus the deletion of the TP adjustment on account of interest on loan is upheld. TP adjustment on account of corporate guarantee for working capital and Corporate guarantee for financing and other arrangements - HELD THAT:- Assessee extending corporate guarantees to its AEs, particularly on the facts and in the circumstances of this case and when the assessee has done so in the course of its stewardship activities for its subsidiaries, does not constitute an international transaction, and, as such, no ALP adjustment can be made in respect of the same. Accordingly, entire ALP adjustment stands deleted. As for the quantum of this adjustment, which is mainly the subject matter of grievance raised in revenue’s appeal, once the entire ALP adjustment stands deleted, that aspect of the matter is wholly academic and does not call for any adjudication by us. Deletion of the positive adjustment u/s. 14A while determining book profit u/s. 115JB confirmed. See ALEMBIC LIMITED [2017 (1) TMI 513 - GUJARAT HIGH COURT] Late payment of employees’ contribution to Provident Fund and ESI - HELD THAT:- This issue is no more res integra as it has been decided by the Hon’ble Jurisdictional High Court of Gujarat in favour of the Revenue and against the assessee in the case of GSRTC [2014 (1) TMI 502 - GUJARAT HIGH COURT]
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