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2012 (11) TMI 268 - ITAT DELHIDisallowance – allege that assessee has paid interest @ 9% per annum on the loan taken by it whereas it has charged interest @ 6.5% to 7% from M/s. PT Minda Asian Automotive Ltd., Indonesia. i.e. joint venture company – alleged that loan was given by the assessee without any business exigencies - explanation given by the assessee that it will get return in future – Held that:- Assessee is a 50% shareholder of the joint venture exploring the business possibility and made the investment in the joint venture - loan was given in foreign currency to an Indonesian company. Assessing Officer ought to have compared the libor rates prevalent in the international market at that point of time - assessee has demonstrated that such rate was in between 4% to 5%. It has charged the rate in between 6.5% to 7%. Thus, in such situation, even on this count also, no disallowance can be made - disallowance deleted Disallowance under sec. 14A - CIT(Appeals) has observed that Rule 8D will not be applicable in the present case in view of the decision of Hon'ble Bombay High Court in the case of Godrej Boyce (2010 (8) TMI 77 - BOMBAY HIGH COURT ) wherein it was held that Rule 8D has been brought on the statute book w.e.f. 24.3.2008 and it will be applicable from assessment year 2008-09 – Held that:- Disallowance has to be worked out after taking into consideration the surrounding circumstances. From the order of Learned CIT(Appeals), it does not reveal that Learned CIT(Appeals) has considered the relevant details before restricting the disallowance to Rs.1 lacs on an estimate basis - matter reamanded back to Assessing Officer for readjudication
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