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TMI Blog2015 (10) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... see and in making addition of the same to returned income. 2.2 The brief facts of the case are that the assessee had advanced interest free loans to its Associate Enterprise. The opening balance was USD 675000. During the year, further advance of USD 300000 and USD 800000 had been received leaving the cash balance of USD 175000 at the end of the year. The auditors report in Form No. 3CEB as required u/s 92E of the I.T. Act was enclosed alongwith return of income. These International Transactions with the Associate Enterprise were referred to Transfer Pricing Officer u/s 92CA of the Act. The TPO's order was also confronted with the assessee which has been enclosed as per Annexure -A of the order of AO. The AO has reproduced the finding give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d called for objections against the draft order passed on 29-12-2010 from the assessee. The assessee filed the objection before the Draft Resolution Panel-1 (for short 'DRP), New Delhi on 27-01-2011. The DRP passed the order on 12-09-2011 and directed the TPO to work out the interest @ 11.40% as against 14% charged by her on the BBB Bonds. In pursuance to the said directions of the DRP, the TPO vide order u/s 144C(5) dated 13-10-2011 worked out the interest which amounted to Rs. 35,88,640/- as against Rs. 44,07,095/- worked out by her vide order u/s 92CA(3) dated 29-10-2010. Accordingly, the addition of Rs. 35,88,640/- was made to the total income of the assessee. 2.3 Being aggrieved by the order of the AO, the assessee is in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er LIBOR + nominal adjustment has been upheld by various ITAT Benches as reasonable. Therefore, we find that interest rate proposed by the assessee @ 8.90% is reasonable as against 11.40% decided by DRP. Accordingly, the assessee gets the partial relief. 3.1 The ground no. 2 of the assessee is that the AO is not justified in disallowing the belated payment of PF and ESI of Rs. 5,00,941/- and in making addition of the same to returned income. 3.2 The facts of the case in brief are that the AO has made an addition of Rs. 5,00,941/- by disallowing the employees contribution towards PF of Rs. 4,17,348/- and ESI contribution of Rs. 83,593/- which had been deposited in Govt. account after expiry of the due dates as prescribed under the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). The Hon'ble Apex Court has dismissed the SLP in the case of CIT vs Vinay Cement 313 ITR 1 (St.). While dismissing the SLP, the Hon'ble Apex Court has referred to decision of Hon'ble Gauhati High Court in the case of CIT vs George Williamson (Assam) Ltd., 284 ITR 619. In the case before Hon'ble Gauhati High Court, the issue was in respect of contribution of PF and ESI relating to employees shares. It is noticed from the audit report that all the payments have been paid before the due date of filing of return and therefore, the ld. CIT(A) was not justified in not deleting the sum of Rs. 150,294/-. The same is deleted.'' Hence, in view of the facts and circumstances of the case and considering the recent judgement dated 13t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 1999-2000 before the AO wherein the assessee has claimed business loss of Rs. 3,41,750/- and unabsorbed depreciation of Rs. 19,15,906/-. He argued that all the details were available with the AO but he has not allowed unabsorbed depreciation of Rs. 1,92,95,972/- as claimed by the assessee. He further argued that the matter may be sent back to the AO for reexamination. 5.5 At the outset, the ld. DR fairly accepted the assessee's proposal. 5.6 We have heard the rival contentions and perused the materials available on record. The DRP already directed the AO to verify the assessee's claim for brought forward unabsorbed depreciation on the basis of I.T. records or assessee's records and allow the same as per law. We a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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