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2019 (4) TMI 1504 - AT - Income TaxTP Adjustment - addition on account of guarantee fee - HELD THAT:- Tribunal in assessee's own case wherein with respect to the similar bank guarantee the Tribunal has upheld addition to the extent of 0.9%. As the facts and circumstances of the case during the year under consideration are same, respectfully following the order of the Tribunal in assessee's own case, we direct the AO to restrict addition on account of guarantee fee @ 0.9%. Addition in respect of interest on loan advanced to AE - HELD THAT:- We direct the AO to restrict the addition on account of interest as per rates applicable to currency in which loan was required to be repaid to the assessee i.e. LABOR rate. Disallowance u/s 37(1) - donation made to Shanti Seva Nidhi - eligible for deduction u/s 80G and also claimed in original return - Allowable revenue expenditure - HELD THAT:- The assessee had claimed an expenditure of ₹ 50,00,000/- u/s 37(1) of the Act which is in the form of donation given to Shanti Seva Nidhi for the purpose of training and providing technical knowledge along with diploma courses to the employees of the assessee company and their children. These students with qualified diploma degrees are in turn recruited by the assessee company for their manufacturing division. Thus the amount given to Shanti Seva Nidhi have resulted in training and providing technical knowledge along with diploma course to the employees of the assessee company and their children and who in turn were recruited by the assessee company in its manufacturing division. Thus, the business purpose of assessee is fulfilled. There is no justification for disallowance of the expenditure u/s 37(1).
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