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2021 (8) TMI 979 - AT - Income TaxTP Addition - addition towards interest on debentures/CCDs - HELD THAT:- Since the facts and circumstances of the instant appeal are mutatis mutandis similar to those of the preceding year, respectfully following the precedent [2020 (12) TMI 779 - ITAT PUNE] we approve the view taken by the ld. CIT(A) and hold that the AO was not justified in re-characterising the transaction of issue of debentures/CCDs as that of equity shares. As regards the ALP determination, we again follow the view taken by the Tribunal for the immediately preceding year and direct the AO/TPO to recompute the ALP of the transactions of payment of interest on debentures/CCDs. Thus the departmental grounds are dismissed. Since the matter of ALP determination has been sent back to the AO/TPO, the direction given by the ld. CIT(A) in this regard, which forms the subject matter of the assessee’s ground, has become infructuous. Education Cess and Secondary and Higher Secondary Cess - whether claim may be allowed as a deduction while computing the total income of the assessee company? - HELD THAT:- The issue raised through the additional ground is no more res integra in view of the judgment of Hon’ble jurisdictional High Court in Sesa Goa Lt. [2020 (3) TMI 347 - BOMBAY HIGH COURT] in which it has been held that Education Cess is not disallowable expenditure u/s.40(a)(ii) - Similar view was earlier taken in Chambal Fertilisers and Chemicals Ltd. [2018 (10) TMI 589 - RAJASTHAN HIGH COURT]. We, therefore, direct the AO to ascertain the correct amount of education cess and then allow a deduction for it, after allowing opportunity of hearing to the assessee.
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