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2020 (7) TMI 125 - AT - Income TaxDisallowance u/s 14A r.w Rule 8D(2)(iii) - assessee had offered a suo motto disallowance - HELD THAT:- As relying on own case [2019 (10) TMI 995 - ITAT MUMBAI] we restore the matter back to the file of learned AO on similar lines. The learned AO is directed to reappreciate the disallowance made by the assessee and invoke Rule 8D only if not satisfied with assessee’s working of disallowance. It is made clear that if the disallowance is computed in terms of Rule 8D(2)(iii) then apart from the directions of Ld. CIT(A) to exclude certain investments, those investments which have not yielded any exempt income during the year under consideration would also be excluded as per the decision of ACIT Vs. Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. Accordingly, Ground No.1 of assessee’s appeal may be treated as partly allowed for statistical purposes. TP Adjustment - Interest charged on the average share application money advanced by the assessee to the AE Saudi Ensas Company, treated by the TPO as loan - HELD THAT:- transfer pricing adjustment as regards charging of notional interest on the share application money that was given by the assessee to its wholly owned subsidiary company viz. Saudi Ensas Company for Engineering Services WLL, UAE, for which allotment of shares was pending on 31.03.2012, remains the same as was there before the Tribunal in the assessee's own case for A.Y 2009-10 and A.Y 2010-11 [2019 (10) TMI 995 - ITAT MUMBAI] .Finding ourselves to be in agreement with the aforesaid view of the Tribunal, we respectfully follow the same. Accordingly, we uphold the deletion of the addition that was made by the A.O/TPO towards charging of notional interest on share application money pending allotment of shares with its wholly owned subsidiary company - Decided against revenue.
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