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2021 (9) TMI 595 - AT - Income TaxTP adjustment in respect of interest payment on debentures - not done the benchmarking of the payment of interest on debentures/compulsory Convertible debentures (CCDs) properly - HELD THAT:- As decided in own case [2021 (8) TMI 979 - ITAT PUNE] tribunal has countenanced the assessee's stand by holding that the assessee rightly issued debentures and CCDs to its AEs and the AO was not justified in re-characterizing the transactions. As regards the ALP determination, the Tribunal restored the matter to the file of AO/TPO for a fresh determination. Addition on reworking of WIP - As argued by assessee alternatively interest accrued and paid on the CCDs had been capitalized to its WIP and had not been claimed as expenditure in the year under consideration - HELD THAT:- The amount of capitalized interest on debentures/CCDs to the work in progress for the assessment year 2013-14 only as is in excess of its ALP freshly determined by the Assessing Officer/TPO should be disallowed proportionately in the years in which the work in progress containing the amount of such interest standing as on 31.03.2013, i.e. FY 2013-14 relevant to AY 2014-15, is reversed on the sale of flats/plots. The same exercise has to be carried on for the assessment years 2014-15 and 2015-16 as well. Following the same parity of reasoning in assessee own case's decision of the Pune Bench of the Tribunal [2021 (8) TMI 1037 - ITAT PUNE]. 'Education cess' and 'Secondary and Higher Education Cess' - whether claim may be allowed as a deduction while computing the total income of the assessee company? - HELD THAT:- As decided in own case [2021 (8) TMI 979 - ITAT PUNE] matter is remanded to the file of the Assessing Officer to ascertain the exact amount of education cess and then allow a deduction for it, after allowing opportunity of hearing to the assessee.
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