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2017 (1) TMI 117 - AT - Income TaxImputing of interest on amounts outstanding from the associated enterprises in terms of section 92(1) - not charging interest from both associated enterprises as well as non-associated enterprise debtors and that the delay in realization of export proceeds - Held that:- It was a common point between the parties that there was uniformity in the act of the assessee in not charging interest for the belated recovery from its associated enterprises as well as non-associated enterprises, but in so far as the issue as to whether the delay in ultimate realization of export proceeds in both cases is same or not is also required to be verified, having regard to the judgment of the Hon’ble High Court in the case of Indo-American Jewellery (2013 (1) TMI 804 - BOMBAY HIGH COURT). A perusal of the said details reveal that the Transfer Pricing Officer has culled out the delay in excess of 365 days in the cases of associated enterprises and for such delay he has imputed interest @ 10.75%. So however, in the case of non-associated enterprises also there is a delay in recovery beyond the period of 365 days. So however, the extent of such delay is not emerging from the discussion in the orders of the authorities below because the Transfer Pricing Officer has confined his working to the delay in the case of associated enterprises alone. The rival counsels agreed that for this purpose, the matter may be restored back to the file of the Transfer Pricing Officer/Assessing Officer. Deduction allowable under section 10AA - Held that:- Income tax authorities erred in setting-off of losses amounting to ₹ 2,14,77,088/- of assessment year 2009-10 from the business income of the current year before allowing exemption under section 10AA of the Act. Accordingly, we set-aside the order of the CIT(A) and direct the Assessing Officer to recompute the deduction allowable under section 10AA of the Act, as above. See CIT VS Black And Veatch Consulting Pvt. Ltd. [2012 (4) TMI 450 - BOMBAY HIGH COURT] Non granting credit for the Fringe Benefit Tax (FBT) paid on 15/6/2010 towards regular income tax - Held that:- Necessary credit deserves to be allowed to the assessee in terms of the CBDT Circular dated 29/1/2010. On this aspect of the matter, the Ld. Departmental Representative had no objection and accordingly the matter is restored back to the file of Assessing Officer, who shall allow appropriate relief in accordance with law. Thus, Ground of appeal of the assessee succeeds for statistical purposes.
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