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2019 (3) TMI 1999 - AT - Income TaxTP Adjustment - interest by treating the investment made by the assessee in the share capital of Associated Enterprises - HELD THAT:- It is clear from a reading of para 'e' of the Cabinet Press release that, computation of ALP will arise income arises from an International transaction between AEs. It does not warrant determination or re-computation of a consideration received / given on capital account. Thus, going by the above, the transaction of investment in shares being payment on capital account falls outside the purview. The aforesaid decision rendered for A.Y. 2010-11 [2017 (11) TMI 1443 - ITAT KOLKATA] has subsequently been followed by the Tribunal in A.Y. 2011-12 & 2012-13 [2017 (11) TMI 1901 - ITAT KOLKATA] to decide the similar issue in favour of the assesese. Transfer Pricing Adjustment made on account of Guarantee fees - Since the issue involved in the year under consideration as well as all the material facts relevant thereto are similar to that of A.Ys. 2010-11 [2017 (11) TMI 1443 - ITAT KOLKATA] 2011-12 and 2012-13 [2017 (11) TMI 1901 - ITAT KOLKATA] we respectfully follow the orders of the Coordinate Bench of this Tribunal and delete the addition relating to the Transfer Pricing Adjustment made on account of Guarantee fees charged to the Associated Enterprises. Ground No. 3 of the assessee’s appeal is accordingly allowed. Disallowance u/s 14A - HELD THAT:- Disallowance under section 14A is also covered by the order of the Tribunal [2017 (11) TMI 1901 - ITAT KOLKATA] wherein the disallowance made under section 14A was deleted by the Tribunal on the ground that there was no exempt income actually earned by the assessee during the relevant previous year. To arrive at this conclusion, the Tribunal relied on the decision of Cheminvest Limited [2009 (8) TMI 126 - ITAT DELHI-B] As submitted by the ld. Counsel for the assessee, no exempt income was earned by the assessee even during the year under consideration and keeping in view this undisputed factual position, we delete the disallowance made by the Assessing Officer under section 14A by following the decision of the Tribunal in assessee’s own case Ground No. 4 is accordingly dismissed.
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