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2023 (10) TMI 1180 - AT - Income TaxTP Adjustment - ALP for corporate guarantee - HELD THAT:- Respectfully following the said decisions of the coordinate 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 0.35% per cent per annum is at arm’s length not requiring any transfer pricing adjustment. Disallowance u/s 14A r.w. Rule 8D - assessee has suo moto disallowed expenses - Mandation of recording satisfaction - HELD THAT:- As decided in M/S GREATSHIP (INDIA) LTD. CASE [2022 (12) TMI 1464 - ITAT MUMBAI] the dissatisfaction has been recorded, however, the same is not in accordance with mandate of Section 14A(2) of the Act as the Assessing Officer has acted in a mechanical manner based upon conjecture/surmise and has recorded dissatisfaction without having regard to the accounts of the Appellant and/or the computation of suo moto disallowance made by the Appellant under Section 14A of the Act. The general hypothesis made by the Assessing Officer fails to meet the mandate of Section 14A(2) of the Act in view of the methodical computation of disallowance furnished by the Appellant taking into the account the actual expenditure incurred by the Appellant. Accordingly, we delete the addition. Computation of book profit making adjustment on account of addition made in respect of guarantee commission and disallowance made u/s 14A r.w Rule 8D by the assessing officer - HELD THAT:- We find that AO has neither made any discussion nor proposed any addition in the draft assessment order pertaining to making adjustment in the book profit u/s 115JB of the Act and also made no discussion or addition in the final assessment order. Therefore, following the decision of Sanmina SCI India (P) Ltd. (2017 (8) TMI 663 - MADRAS HIGH COURT) and decision of Woco Motherson Advances Rubber Technologies Ltd. [2017 (4) TMI 660 - GUJARAT HIGH COURT]. We have already deleted the aforesaid further addition made u/s 14A of the Act on the basis adjustment made by the assessing officer in the computation of book profit u/s 115JB of the Act. In view of the above facts and judicial findings, the appeal of these grounds of appeal of the assessee are allowed. Short credit of TDS - HELD THAT:- As ITAT in the case of the assessee itself for assessment year 2018-19 [2022 (10) TMI 1209 - ITAT MUMBAI] in appeal against intimation u/s 143(1) has allowed the appeal in favour of the assessee. Therefore, we direct the AO to allow the claim of TDS credit as directed by the ITAT in the case of the assessee as referred above, therefore, this ground of appeal of the assessee is allowed for statistical purpose.
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