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2018 (10) TMI 1845 - AT - Income TaxTP Adjustment - interest income adjustment - lower authorities had taken domestic interest rates as the relevant benchmark for arriving at the impugned arm’s length adjustment involving foreign currency denomination loans to the overseas associate enterprise(s) - CIT(A) as directed AO/ TPO to bench mark the impugned loan transaction at LIBOR rate than domestic interest rates keeping in mind the nature of international transaction - HELD THAT:- A catena of case law has already concluded that such foreign currency denomination loans have to be benchmarked at LIBOR rate only. learned departmental representative fails to indicate any legal or factual exceptions thereto. We therefore uphold the CIT(A) findings under challenge. CIT-A concluding that corporate guarantee does not amount to an international transaction within the meaning of Section 92B - HELD THAT:- The revenue fails to quote any judicial precedent to the contrary. We affirm the CIT(A) findings on the instant legal issue as well. The Revenue’s identical first substantive ground seeking to revive ALP adjustment on interest as loans and corporate guarantee fails therefore. Addition u/s 36(1)(va) read with section 2(24)(x) - delayed employees contribution to ESI/PF - HELD THAT:- CIT(A) holds that the assessee had paid the amount in issue before the due date of filing return not inviting any disallowance as per decision in CIT vs Vijay Shree Ltd. [2011 (9) TMI 30 - CALCUTTA HIGH COURT] and CIT vs Coal India Ltd. [2015 (8) TMI 1451 - CALCUTTA HIGH COURT] respectively. We affirm the CIT(A)’s findings under challenge. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Assessee has not derived any exempt income in the impugned assessment year. The CIT(A) has followed hon’ble Madras high court’s decision in Redington (India) Ltd. [2017 (1) TMI 318 - MADRAS HIGH COURT] that the impugned disallowance provision does not apply in the absence of exempt income - Decided against revenue.
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