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2022 (11) TMI 1058 - AT - Income TaxTP adjustment on account of guarantee commission - DR objected to the application of 0.5% for benchmarking the transaction of corporate guarantee fees - HELD THAT:- We find that the coordinate bench of the Tribunal in assessee’s own case in 63 Moon Technologies Ltd (formerly Financial Technologies India Ltd) [2021 (12) TMI 989 - ITAT MUMBAI] for assessment years 2009–10 and 2010–11, while deciding similar issue directed the corporate guarantee fee be computed at 0.5%. Disallowance made on account of interest on payment of Zero Coupon Convertible Bonds - HELD THAT:- We find that the coordinate bench of the Tribunal in assessee’s own case for assessment years 2009–10 it is clear that the amount of debenture redemption premium is accrued and liable to be deducted. Hence, in the background of aforesaid discussion and precedents, we set aside the orders of the authorities below, and decide the issue in favour of the assessee. Disallowance u/s 14A - necessity of recording satisfaction - HELD THAT:- The satisfaction as required to be recorded under the provisions of section 14A of the Act is not limited to merely disagreeing with the submission of the assessee and requires that the AO should also provide the basis for reaching such conclusion, after having regard to the accounts of the assessee. However, it is evident from the record that in the present case the AO merely disagreed with the suo moto disallowance offered by the assessee u/s 14A and straightaway computed the impugned disallowance by applying the provisions of Rule 8D. Thus, respectfully following the order passed by the coordinate bench of the Tribunal in assessee’s own case cited supra, we find no infirmity in the impugned order passed by the learned CIT(A) on this issue. As a result, ground No. 3 raised in Revenue’s appeal is dismissed.
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