2013 (11) TMI 1583 - ITAT MUMBAI

TP adjustment - benchmark the Corporate Guarantee Commission Prices - Held that:- It is our opinion that the Bank Guarantee Commission Prices cannot be used as External CUPs to benchmark the Corporate Guarantee Commission Prices. Further, we find that, unlike in other cases of NIL corporate guarantee commission, the present assessee has charged the GC Rate of 0.53% and 1.47% from its AEs. Therefore, in our opinion, these rates are competent given the facts of the present case qua the rates discussed and approved by the Tribunal in adjudicating the other cases relating to the Guarantee commission transactions benchmarked using the CUP method. Therefore, the TPO's comparables are IUPs' i.e. Incomparable Uncontrolled Prices. Therefore, .we are of the opinion, the GC rates of 0.53% and 1.47% benchmarked by the assessee are fair and reasonable and they should be accepted without any modification. Therefore', we dismiss the TPO's CUP and order deletion of the additions made by the AO on account of Transfer pricing, provisions. In the result, the order of the CIT(A)/TPO/AO on the TP adjustments is set aside.

Deduction u/s 35(2AB) - Held that:- Original claim of deduction u/s 35(2AB) in the AY 2005-2006 is allowed and therefore, the alternate claim of depreciation is rightly rejected. Considering the relief granted by the Tribunal, allowing depreciation on the said amount is not sustainable. Therefore, we are of the considered opinion that the order of the CIT(A)j is fair and reasonable-and it does not call for any interference.

Deduction u/s 80-IB of the Act in respect of export benefits in the form of DEPB licenses not allowed

Interest could not be levied u/s 234B of the Act in respect of such enhanced book profits under section 115JB