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2022 (12) TMI 1084 - AT - Income TaxTP adjustment - upward adjustment on notional interest on advance made to wholly subsidiaries/associated enterprises of the assessee - HELD THAT:- We noted that this issue is covered in the case of CIT v. Everest Kanto Cylinder Ltd. [2015 (5) TMI 395 - BOMBAY HIGH COURT] wherein, the Libor + 200 bps point is accepted at the bench mark and hence, respectfully following the same, we upheld the order of the AO/TPO. This issue of the assessee is dismissed. Disallowance of expenses relatable to exempt income by invoking provisions of Sec.14A r.w.r.8D and making disallowance of interest u/r.8D(2)(ii) and u/r.8D(2)(iii) - HELD THAT:- We noted that the AO simpliciter given his findings that the disallowance computed by the assessee is not correct, but he has not examined the accounts of the assessee and disallowance made even though offered by the assessee. We noted that the AO could not find any fault as to how this disallowance is not correct. There is no satisfaction recorded by the AO in regard to this disallowance and hence, there is no satisfaction recorded by the AO in terms of sec.14A of the Act. This issue of the assessee is allowed. Disallowance of claim of deduction u/s.80JJAA - AO required the assessee as to whether any of the regular workmen as mentioned in Column No.7 was employed for a period of less than 300 days during the previous year - HELD THAT:- The Hon'ble High Court of Karnataka in the case of Texas Instruments India (P.) Ltd. [2021 (4) TMI 1049 - KARNATAKA HIGH COURT] has considered the issue of amendment brought in Sec.80JJAA of the Act, by bringing proviso which has relaxed condition in regard to number of days of employment of new employees. Once, one has interpreted the provision and held the same as retrospective, no contrary decision was pointed out by the Revenue before us. We in principle allow the claim of the assessee, but subject to verification by the AO. The AO will carry out the verification in terms of amendment bringing the provisions of Sec.80JJAA and then will consider the eligibility of claim of deduction. Accordingly, appeal is allowed, but for verification purpose remanded back.
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