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2019 (9) TMI 920 - HC - Income TaxTP Adjustment - average rate of interest of 11.30% during the year - series of debentures issued in different years was a separate international transaction and each transaction was required to be benchmarked separately - HELD THAT:- Tribunal in the impugned judgment has made certain observations suggesting that the identification of the “tested party” is imperative while applying other methods from comparison for transfer pricing and not while applying CUP method. Our non-consideration of the revenue’s Appeal in the present case, should not be seen as putting our seal on such observations of the tribunal. We keep such question open to be examined in an appropriate case. In the present case, independent of such observations of the tribunal, we find that the conclusions arrive at, are based on evidence on record which conclusions call for no interference. Disallowance u/s 14A computed as per Rule 8D - HELD THAT:- The issue is no longer resintigra. The facts are that the assessee had not earned any exempt, income during the year under consideration. As held earlier Delhi High Court which judgment is also followed repeatedly by our Court, in case of Chemvinvest Ltd. Vs. Commissioner of Income Tax [2015 (9) TMI 238 - DELHI HIGH COURT] in such a case disallowance of expenditure under section 14A of the Act would not be permissible. The decision of Delhi High Court was carried in the appeal by the revenue. The SLP has been dismissed by the Supreme Court. Addition on account of interest accrued from three parties had become NPA - HELD THAT:- As decided in BAJAJ FINANCE LIMITED [2019 (4) TMI 378 - BOMBAY HIGH COURT] interest on NPAs cannot be taxed on accrual basis. It was noted that NBFC would be governed by the directions issued by the Reserve Bank of India and RBI directives provided that under certain circumstances, a loan or advance would be treated as NPA. The Court on the real income theory held that such interest would not be taxable.
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