Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 163 - GUJARAT HIGH COURTAddition on account of Transfer Pricing upward adjustment - pledging of shares fot taking term loan - ITAT deleted the addition - Held that:- Assessee was correct in pointing out that though at one stage, the assessee had intended to pledge its shares for guarantee in favour of an AE, however, such transaction did not go through since the RBI permission, which was needed, was not granted. The TPO ventured in the realm of conjectures when he recorded that despite this refusal, the assessee may have gone through with the pledging of shares, but there is nothing on the record to suggest that despite refusal from RBI, assessee pledged the shares. The CIT (Appeals) as well as the Tribunal found that the RBI's letter, placed on record, concerns the same transaction. On both counts thus, there was evidence suggesting that the transaction of assessee pledging its shares fell through for want of RBI permission, no question of law arises Disallowance under Section 14A for interest for earning tax free income - ITAT deleted the addition - Held that:- In this respect, the Tribunal noted that the assessee had sufficient interest free funds for investing into tax free investments. The Tribunal, therefore, accepted assessee's version that interest free funds were not diverted for such investment. The Tribunal placed reliance on decision of this Court in case of Commissioner of Income Tax vs. Torrent Power Ltd. [2014 (6) TMI 185 - GUJARAT HIGH COURT ] . In view of such facts, we do not find any question of law arises.
|