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2020 (9) TMI 276 - ITAT MUMBAITP Adjustment - adjustment relating to corporate guarantee - TPO benchmarked the transaction of guarantee fees @1.25% which is average of fees charging for bank guarantee by banks - HELD THAT:- Almost on similar set of facts in assessee’s own case for A.Y. 2013-14 [2020 (1) TMI 607 - ITAT MUMBAI ] the TPO made adjustment of corporate guarantee @ 1.25% and on appeal before the Tribunal the same was reduced to 0.5% by following the decision of the Hon'ble Bombay High Court in the case of Everest Canto Cylinders Ltd. [2015 (5) TMI 395 - BOMBAY HIGH COURT]. Considering the decision of the Hon'ble Jurisdictional High Court we accept the alternative pleas of the learned A.R. of the assessee to restrict the adjustment on account of corporate guarantee @0.5% till July 2013 till the corporate guarantee remained in existence. The learned TPO is directed accordingly to restrict the adjustment on account of corporate guarantee @0.5% till July 2013. In the result, this ground of appeal is partly allowed. Interest on loan given to AE - commercial expediency of loan given to subsidiary - assessee submits that interest on the loans given to AE to be benchmark by using the prevalent rate in the country where loans utilised for appropriate LiBOR rates - HELD THAT:- As decided in own case [2018 (11) TMI 864 - ITAT MUMBAI] AR submitted that the assessee had advanced loans in foreign currency i.e. US Dollars and therefore, the benchmarking was to be done at LIBOR and to support the same, additional evidences in the shape of outward remittance advices issued by the bank and other documents has been placed - For the aforesaid limited purpose, the matter stand remitted back to the file of Ld. AO / TPO with a direction to the assessee to provide requisite details & information to substantiate the claim. This ground stand partly allowed for statistical purposes -, respectfully following the orders of the coordinate benches of the Tribunal this issues is restored back the file of TPO/AO to pass the order by following the directions in [2018 (11) TMI 864 - ITAT MUMBAI]. Disallowance under Section 14A - DRP affirmed the disallowance made by AO holding that disallowance made by him is in accordance with Rule 8D(2)(iii) being .5% of average value of investment - HELD THAT:- Considering the submission of the learned A.R. of the assessee that no exempt income was earned by the assessee and the AO has not identified any exempt income, therefore, following the decision of the Tribunal in assessee’s own case for A.Y. 2013-14, wherein the Coordinate Bench has followed the decision in the case of Chem Invest Ltd. vs. CIT [2015 (9) TMI 238 - DELHI HIGH COURT] and Principal CIT vs. Ballarpur Industries Ltd. [2016 (10) TMI 1039 - BOMBAY HIGH COURT] no disallowance in this regard for the year under consideration is warranted. Therefore, the AO is directed to delete the entire disallowance under section 14A. MAT adjustment - Since we have deleted the entire disallowance under section14A, similarly no adjustment on account of disallowance of section 14A in the book profit under section 115JB is warranted as per the decision of the Special Bench of the Delhi Tribunal in Vireet Investments Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. In the result this ground of appeal is allowed. Disallowance of interest under section 36(1)(iii) - HELD THAT:- Respectfully following the decision of the Coordinate Bench in earlier assessment years [2020 (1) TMI 607 - ITAT MUMBAI] wherein it was held that the assessee has sufficient interest free funds available with it and the advances was given for commercial expediency - delete the addition/disallowance under Section 36(1)(iii) hence we are in agreement with the submissions of the assessee that this ground of appeal is covered in favour of the assessee. Addition on account of mismatch in 26AS data - HELD THAT:- As relying on own case [2018 (11) TMI 864 - ITAT MUMBAI ] we restore the issue to the file of the AO to reconsider the issue and verify the facts including reconciling the entries in Form-AS26 and grant appropriate relief to the assessee in accordance with law. In the result this ground of appeal is allowed for statistical purposes.
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