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2020 (8) TMI 919 - AT - Income TaxTP Adjustment - interest on outstanding receivables to be computed by applying LIBOR plus 0.5% - HELD THAT:- Exactly similar issue has been dealt with by the Tribunal in assessee’s own case for the A.Y. 2013-14 [2019 (4) TMI 2094 - ITAT MUMBAI] wherein the Tribunal has held that interest on outstanding receivables has to be computed by applying LIBOR plus 0.5%. Tribunal in assessee’s own case for the A.Y. 2013-14, we direct the A.O. to make adjustment by applying LIBOR plus 0.5%. We direct accordingly. Treatment of interest income received on margin money and on bank deposit and ICD - ‘income from other sources’ OR ‘business income’ - HELD THAT:- As respectfully following the order of the Tribunal in assessee’s own case in [2019 (4) TMI 2094 - ITAT MUMBAI] we direct the A.O. to treat interest on margin money as income from business whereas interest on bank deposit and ICD as income from other sources. We direct accordingly. Disallowance u/s 14A r.w.r. 8D under normal provisions as well as while computing book profit U/s 115JB - HELD THAT:- In the instant case before us, there is no dispute to the fact that the assessee was not in receipt of any exempt income, therefore, no disallowance is warranted U/s 14A of the Act r.w.r. 8D of the Rules under normal provisions as well as while computing income u/s 115JB of the Act, since assessee was not in receipt of any exempt income during the year under consideration. Addition on account of provision of income tax recoverable from GUVNL and Essar Steel Ltd. while computing income under the normal provisions and for the purpose of book profit U/s 115JB - HELD THAT:- Respectfully following the orders of the Tribunal in assessee’s own case [2019 (4) TMI 2094 - ITAT MUMBAI] we confirm the addition made by the AO/TPO under normal provisions of the Act. Addition made while computing book profit U/s 115JB - As relying on [2019 (4) TMI 2094 - ITAT MUMBAI] confirm the action of the A.O. on account of provisions of income tax recoverable while computing income under normal provisions of the Act and also direct the A.O. to delete the addition made while computing book profit U/s 115JB of the Act. TP adjustment on account of interest on money advanced as share application money - adjustment by charging interest @ 4.19% on outstanding share application money paid by the assessee to its AE - HELD THAT:- No merit in the adjustment made by the TPO on account of interest for the money paid for allotment of shares which was allotted within the period of 6 months. Similar view has been taken by the Coordinate Bench in the case of group concern Essar Steel Orissa Ltd. [2016 (8) TMI 415 - ITAT MUMBAI] wherein it was held that recharacterization of the transaction is not permissible without any material or evidence suggesting that such advance is only a loan - Thus we do not find any merit in the adjustment made by the A.O. by charging interest on the advances made for allotment of shares. We direct accordingly.
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