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2018 (5) TMI 1633 - AT - Income TaxInitiation of revision proceedings u/s 263 - transfer pricing - interest free loans to associate companies out of borrowed capital - international transaction - Held that:- assessee is a firm which is engaged in the business of providing infrastructure facilities to educational institutions - assessee had advanced an interest free loan being transaction of lending of money to its associate enterprise as per Sec. 92B(1) - thus the assessee who is under a statutory obligation to have filed the report in Form 3CEB has failed to do so - since assessee has advanced loan to its associated enterprise but had in blatant violation of the statutory obligation of form 3CEB - thus a reference shall be made to the TPO for determining the ALP. - Decided in favor of revenue. Disallowance of interest on borrowed capital u/s 36(1)(iii) - Held that:- determining of ALP relates to the income to be charged including allowance for any expense or interest arising from any international transaction, while for the disallowance under Sec. 36(1)(iii) relates to the claim of deduction from income - Decided in favor of assessee.
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