Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1257 - ITAT MUMBAITP adjustment - outstanding loan due from AE located in Dubai - TPO had taken interest rate @ 10.589% and charged interest on the loan amount - HELD THAT:- As in AY 2009-10 and 2010-11, the assessee did not make transfer pricing study. As noticed that the assessee had charged interest @ 5.14% and 5.08% respectively in those years, while the average LIBOR rate was 2.853742 and 1.284833 in those years respectively. It appears that no TP adjustment was made in those years. We are of the view that interest rate may be fixed at LIBOR + 300 basis points - we direct the AO/TPO to recompute the transfer pricing adjustment by adopting interest rate of average LIBOR + 300 basis points. Disallowance u/s 14A - assessee had made investments AO disallowed 0.5% of the average value of investments, income from which does not form part of investments - HELD THAT:- As we notice that the details of quantum of exempt income were not given. It is well settled proposition that the amount of disallowance u/s 14A should not exceed exempt income. Accordingly, we restore this issue to the file of AO and direct him to restrict the disallowance to the quantum of exempt income. Disallowance of Travelling expenses - expenses incurred towards purchase of foreign exchange - HELD THAT:- In our view, the assessee may be provided with one more opportunity to offer explanations. Accordingly, we restore this issue to the file of AO for examining it afresh. Addition of interest income found in ITS data, but not reported by the assessee in the return of income - HELD THAT:- We notice that the assessee has accepted this addition before the AO. Hence we dismiss this ground of the assessee. Addition u/s 41(1) of the Act towards remission of liability - huge sum was due from party for quite long time - HELD THAT:- We notice that the AO has not examined as to whether the above said amount was claimed as expenditure in any of the years, which is the paramount condition for invoking provisions of sec.41(1) of the Act. Accordingly, we are of the view that this issue requires fresh examination. Accordingly, we restore this issue to the file of AO. We also direct the assessee to furnish all the relevant details to AO. Disallowance of set off of short term capital gain considering it as bogus/sham transactions - HELD THAT:- In our view, this issue also requires fresh examination. Accordingly, we restore this issue to the file of AO. We also direct the assessee to furnish all the relevant details to the AO. Disallowance u/s 43B - reducing the same from closing Work in Progress - HELD THAT:- We notice that the interest was payable to Punjab and Maharashtra Co-operative Bank. The interest payable to a co-operative bank was brought within the ambit of sec.43B of the Act with effect from AY 2018-19. Accordingly, we direct the AO to delete this disallowance and consequently, the same is not required to be deducted from the value of Work in Progress.
|