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2019 (3) TMI 263 - AT - Income TaxInternational transaction - TP adjustment - advancement of share application money - HELD THAT:- As the assessee had entered into a transaction of purchase of share of shares of an AE, as held that The TPO could not have treated such transactions as a loan and charge interest thereon on notional basis. We set aside the order of the Assessing Officer and delete the addition. See BHARTI AIRTEL LIMITED (BHARTI CRESCENT) VERSUS ADDITIONAL COMMISSIONER OF INCOME TAX RANGE 2, NEW DELHI [2014 (3) TMI 495 - ITAT DELHI] - Decided in favour of assessee Disallowing proportionate interest cost on borrowings u/s 36(1)(iii) - borrowed funds were not used to make investment in group entities - commercial expediency - HELD THAT:- Issue is covered by the Hon’ble Delhi High Court in the case of the assessee itself for assessment year 2010-11 wherein on identical facts, disallowance of interest was deleted. Investment in subsidiaries/ joint venture companies was one of the main objects of the respondent-assessee and hence expenditure in the nature of interest incurred for the purpose of making investments cannot be disallowed under Section 36(1)(iii) - Decided in favour of assessee
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