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2021 (12) TMI 1324 - AT - Income TaxTP adjustment in respect of international transactions of Intra Group Services provided by the assessee to its Associated Enterprises (AE) - HELD THAT:- Revenue intends to keep issues alive, however, could not controvert view taken in respect of these issues as there has been no contrary observation/material evidences brought out on record by ld. CIT DR. It has been admitted by him that facts and circumstances of the services received by assessee for the year under consideration are same vis-à-vis assessment year 2010-11, and other preceding assessment years. We are therefore inclined to follow the same view. Respectfully, following view taken by this Tribunal in assessment year 2010-11 and other preceding assessment years, orders of which are placed in paper book, addition made by Assessing Officer stands deleted. To maintain the rule of consistency, we follow the earlier order of Tribunal and decide the issue in favour of the assessee and the addition made being T P adjustment on account of intra group services provided by the assessee to its AE is deleted. TP adjustment of interest payment on loan - HELD THAT:- This Tribunal for the assessment years 2011-12 to 2014-15 [2018 (7) TMI 1955 - ITAT NEW DELHI] remitted this issue to the record of the TPO for undertaking benchmarking analysis in accordance with the directions of this Tribunal for the assessment year 2010-11. Disallowance of branch office expenditure and expenditure incurred due to non-producing of production sharing contracts - HELD THAT:- We fail to see any such provision in the act that if the other party in the joint-venture do not agree to share the particular cost, the cost incurred by one of the partners of that joint-venture becomes the expenditure not for the purpose of the business of that partner. No such provision has also been brought to our notice by the revenue. It is also not the case of the revenue that details of those expenditure are not available before them or Assessee has furnished incomplete information for its allowability. Further, no judicial precedent was cited before us by revenue, which says that such expenditure are not allowable to the Assessee. Accordingly, these grounds raised by the assessee stands allowed. Disallowance of head office expenses - HELD THAT:- The fact that business model has not undergone any change since the AY 2010-11 and by following the decision rendered by the coordinate Bench of the Tribunal in taxpayer's own case for AY 2010-11, we are of the considered view that the cost of services availed of by the taxpayer required by PSC with regard to its standard of operation including the quality of execution of work, access to latest industry information and global updates, safety of its employees and the environment etc., cannot be disallowed merely on the ground that the said expenses have not been borne by the joint venture partner, particularly when it is not disputed by the Revenue that the expenditure were made for commercial expediency.To maintain the rule of consistency, we follow the earlier order of Tribunal and decide the issue in favour of the assessee and allow this ground of assessee's appeal. Disallowance of depreciation and depletion - HELD THAT:- We deem it proper to restore the issue to the file of the Assessing Officer with a direction to give an opportunity to the assessee to substantiate its case. The Assessing Officer shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The ground raised by the assessee on this issue is allowed for statistical purposes - To maintain the rule of consistency, we follow the earlier order of Tribunal and restore this issue to the record of Assessing Officer with the same directions for deciding the same afresh after giving a reasonable opportunity of hearing to the assessee. Accordingly, this ground of appeal is allowed for statistical purposes. Disallowance of inventory written off - HELD THAT:- After hearing both the sides and considering the totality of the facts of the case, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to give an opportunity to the assessee to substantiate his case. The Assessing Officer shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The ground raised by the assessee on this issue is allowed for statistical purposes. Disallowance of deduction of Education Cess - assessee claimed deduction on account of education cess paid before the due date of filing the return of income - AO disallowed the claim of the assessee being part of the Income-tax which is not an allowable deduction - HELD THAT:- The dispute under consideration is purely legal in nature, as the facts are not in dispute. As in the case of Chambal Fertilizers and Chemicals [2018 (10) TMI 589 - RAJASTHAN HIGH COURT] and Sesa Goa Ltd. [2020 (3) TMI 347 - BOMBAY HIGH COURT], wherein after considering the CBDT Circular, it has been held that the assessee is eligible to claim the deduction of the 'cess' as per the provisions of Section 37 of the Income Tax Act. In the absence of any contrary decision of jurisdictional High Court or any other high Court, the decisions relied upon by the ld. Sr. counsel are binding on this Tribunal. Respectfully following the above decisions, this issue is decided in favour of the assessee and the claim of deduction on account of education cess is allowed. Short credit of TDS - HELD THAT:- Assessing Officer is directed to verify the correct TDS credit available to the assessee and then to allow the same. Interest on refund u/s. 244A - HELD THAT:- We note that the refund of tax is consequential to the outcome of the appeal filed by the assessee. Therefore, the Assessing Officer is directed to consider the consequential effect of the refund and interest there upon u/s. 244A of the Act.
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