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2021 (9) TMI 844 - AT - Income TaxRectification of mistake u/s 254 - Disallowance u/s 14A - argument was advanced by the assessee that since audited financial statement showing availability of surplus fund was available on record, there is no need for restoring the issue to the assessing officer for verifying the availability of surplus funds - HELD THAT:- Availability of surplus funds in the context of disallowance of interest expenditure u/r 8D(2)(ii), the Tribunal clearly observed that in case surplus fund was available, no disallowance of interest expenditure can be made - Tribunal had directed the assessing officer to verify the availability of surplus interest free funds and delete the disallowance made u/r 8D(2)(ii). While doing so, the Tribunal has specifically observed that neither the assessing officer nor the learned Dispute Resolution Panel has properly appreciated assessee’s contention regarding availability of surplus interest free funds - No rectifiable mistake as the assessee tries to make out. The assessee, in our view, wants the Tribunal to pass an order according to its own liking. Thus, in our view, there is no mistake in the order of the Tribunal as contemplated under section 254(2) of the Act on this issue. Accordingly, we decline to entertain assessee’s plea in this regard. Disallowance under section 14A r.w.r. 8D while computing book profit under section 115JB of the Act - Tribunal, though, has agreed with the legal principle enunciated in the case of ACIT vs Vireet Investments P Ltd .[2017 (6) TMI 1124 - ITAT DELHI] that, while computing book profit under section 115JB of the Act, no adjustment/disallowance can be made with reference to section 14A r.w.r.8D of the I.T. Rules, 1962, however, considering the fact that the assessing officer retains his power to make adjustment under Explanation 1(f) of section 115JB of the Act, the Tribunal has directed the assessing officer to compute book profit under section 115JB of the Act. Pertinently, in case of ACIT vs Vireet Investments P Ltd (supra), the Special Bench of the Tribunal has also expressed similar view by holding that the assessing officer can make adjustment under Explanation I(f) under section 115JB. That being the case, we do not find any mistake apparent on record as per section 254(2) of the Act. This plea of the assessee is rejected. Adjustment made on account of provision of corporate guarantee - While deciding the issue relating to adjustment on account of provision of corporate guarantee, the Tribunal has followed the orders passed by it in assessee’s own case in assessment years 2008-09, 2009-10 and 2010-11 and restricted the disallowance to 0.5%. While deciding the issue in the preceding assessment years, the Tribunal had rejected assessee’s pleading that provision of corporate guarantee does not come within the purview of international transaction. In the appellate order of the impugned assessment year, the Tribunal has simply followed its earlier decision. Thus, it has to be presumed that assessee’s contention that provision of corporate guarantee is not an international transaction was deemed to have been rejected and the Tribunal proceeded on the footing that it is an international transaction. Thus, in view of our observation above, there is no need for any rectification / recall of the earlier order of the Tribunal. Rectification application dismissed.
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