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2023 (3) TMI 653 - AT - Income TaxTP Adjustment - determination of ALP of the financial guarantee given by the Appellant to its AEs @ 1.25% per annum by the DRP - DRP has while reducing the rate of guarantee commission from 2.07% as determined by the TPO to 1.25% relied upon the order of DRP for the Assessment Year 2013-14 and 2014-15 - HELD THAT:- Respectfully following the said decisions of the co-ordinate benches of the Tribunal in the case of the Appellant for the Assessment Years 2011-12 [2021 (10) TMI 822 - ITAT MUMBAI], 2012-13 [2021 (4) TMI 254 - ITAT MUMBAI], 2013-14 [2021 (10) TMI 453 - ITAT MUMBAI] and 2014-15 [2021 (4) TMI 254 - ITAT MUMBAI], we hold that corporate guarantee commission determined by the Appellant at the rate of 0.40 per cent per annum is at arm’s length not requiring any transfer pricing adjustment. Adoption of interest rate @ LIBOR plus 3.332% per annum as appropriate rate to benchmark interest charged on loan to AEs - TPO had determined ALP taking interest rate of 6.17 percent per annum which was reduced to LIBOR plus 2.9% by the DRP - HELD THAT:- Since the same loan is continuing during the relevant assessment year, we do not see any reason to depart from a view consistently taken by the Tribunal in the case of the Appellant for the immediately preceding assessment years in respect of the same loan transaction. We delete the addition on account of upward transfer pricing adjustment relating to interest charged to AEs. Disallowance u/s 14A of the Act read with Rule 8D - necessity of recording satisfaction - HELD THAT:- We note that the Appellant had methodically identified actual expenses which can be reasonably treated as relatable to the exempt income and disallowed such expenses under Section 14A. However, the Assessing Officer had, without recording dissatisfaction, rejected the computation/statements furnished by the Appellant. The Tribunal has, in identical facts and circumstances, decided this issue in favour of the Appellant vide order [2021 (10) TMI 822 - ITAT MUMBAI] pertaining Assessment Year 2011-12 holding that the satisfaction recorded by the Assessing Officer in rejecting Appellant’s computation was not in accordance with the mandate envisaged under section 14A(2) of the Act - we delete the disallowance made by the Assessing Officer under Section 14A of the Act read with Rule 8D(2)(iii). Grant credit of tax deducted at source - intimation u/s 143(1) - HELD THAT:- Appellant not being satisfied filed appeal before the Tribunal which was disposed off vide order [2020 (2) TMI 21 - ITAT MUMBAI] giving certain directions to the Assessing Officer. The Ld. Authorised Representative for the Appellant submits that the Assessing Officer has not taken any steps pursuant to the order passed by the Tribunal. In the interest of justice we deem it appropriate to comply with the order passed by the Tribunal while passing appeal effect order.
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