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2019 (7) TMI 379 - AT - Income TaxTP adjustment - determining arm's length price of Head Office General & Administrative expenses eligible to be claimed u/s 44C - HELD THAT:- Though TPO has determined the arm's length price of the Head Office expenditure allocated to the assessee at nil, however, ultimately there is no financial implication on the issue as the assessee had not claimed such expenditure as deduction either in the Profit & Loss account or the computation of income. AO has also not made any addition in the assessment order. In aforesaid view of the matter, the issue raised in this ground is of mere academic importance, hence, we do not consider it necessary to delve any further into the issue. However the merits of the issue i.e., whether the Transfer Pricing Officer is competent to determine the arm's length price of the Head Office, General and Administrative expenditure at Rs. Nil, is an important legal issue which has to be decided keeping in view the provisions of the Act as well as relevant case laws. Therefore, while making it clear that we have not expressed any opinion on the merits of the issue as raised in this ground, we leave it open for adjudication if the issue arises in assessee’s case for any other assessment year in future. With the aforesaid observations, the ground raised is dismissed as infructuous. Levy of interest under section 234C - HELD THAT:- Transaction could not be completed due to a technical glitch at RBI’s payment gateway. This fact was communicated to the assessee by its banker. In fact, the banker also issued a certificate to this effect. Thus, from the facts on record it is evident, insofar as the assessee is concerned, it had made the payment of advance tax on the due date i.e., 15th June 2009. The transaction relating to the aforesaid payment could not be completed on 15th June 2009, for reasons beyond the control of the assessee. Therefore, the delay of one day in making payment of advance tax is not attributable to the assessee. That being the case, levy of interest under section 234C is unjustified. Since all the factual details relating to the payment were available before Commissioner (Appeals), she should have adjudicated the issue on merit instead of directing the AO to verify. Accordingly, we direct the Assessing Officer to delete the interest charged under section 234C of the Act. Ground is allowed.
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