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2023 (8) TMI 814 - AT - Income TaxDepreciation on trademark u/s 32 - HELD THAT:- The issue stands adjudicated in the case of the assessee for the A.Y. 2007-08 and A.Y. 2009-10 [2016 (8) TMI 869 - ITAT DELHI] Since, the matter stands adjudicated by the Co-ordinate Bench of Tribunal, in the absence of any material change in the factual matrix and legal proposition, we hold that the same ratio applies for the instant year. Non deduction of TDS on Credit Card Charges - addition u/s 40(a)(ia) - HELD THAT:- CIT(A) has not erred in deleting the disallowance made by the Assessing Officer u/s 40(a)(ia) of the IT Act on account of non-deduction of tax on credit card charges as relying on NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012 stating no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), excluding a foreign bank, namely bank guarantee commission;cash management service charges;depository charges on maintenance of DEMAT accounts;charges for warehousing services for commodities;underwriting service charges;clearing charges (MICR charges) and credit card or debit card commission for transaction between the merchant establishment and acquirer bank. TP Adjustment - Redemption of Deferred Shares - TPO held that though in Form 3CB the assessee has reported that it has applied other method but no method was applied to benchmark the transaction of redeeming of shares - as per CIT(A) TPO had correctly benchmarked them on the basis of valuation report of the Ordinary Shares - HELD THAT:- As gone through the approval proposal to make investment addressed to Standard Chartered Bank at page no. 210. We have also gone through the notification letter exercising share options in the capital of East Ltd. at page no. 278. We have also gone through the letter of the Chartered Accountant indicating the number of shares consisting of 48573 ordinary shares and 20,000 deferred shares at page no. 226. As gone through the reasons given with regard to the valuation shares @ 1 £ each against the value of the ordinary shares. The main contention of the assessee was the shares are non-marketable, do not have voting rights and do not receive dividends. At the same time, we have also observed that the deferred shares are converted into ordinary shares and once converted as ordinary shares they acquire all the benefits and characters attributable to ordinary shares. The deferred shares carried rights as they would automatically be converted into ordinary shares when the holdings of the assessee in East Ltd. falls below 25.1%. Keeping in view, the fact that the deferred shares can be converted into ordinary shares without any encumbrances, we decline to interfere with the order of the ld. CIT(A). Notional Interest - assessee stated that it had advanced interest free loan to its wholly owned subsidiary out of its own funds - assessee has also charged interest on the same loan in the subsequent year owing to the provisions of Companies Act, 2013 - CIT(A) confirmed the addition relying on the judgment of Hon’ble Apex Court in the case of SA Builders [2006 (12) TMI 82 - SUPREME COURT] - HELD THAT:- It is a settled position of law that if the assessee has sufficient interest free own funds to lend monies interest free, no addition is called for. Since, it is contested that the assessee has own interest free funds, the matter is being referred back to the file of the AO to examine the availability of interest free own funds and compute the disallowance accordingly.
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