TMI Blog2015 (12) TMI 1552X X X X Extracts X X X X X X X X Extracts X X X X ..... n for this delay in allotment of shares also, the very foundation of impugned ALP adjustment is devoid of legally sustainable merits. Hence we hold that the impugned ALP adjustment is devoid of merit and therefore deleted in both years because it was agreed by both sides that facts on this aspect are identical in both years. Also as we have held that no ALP adjustment is to be made in the present case, the dispute raised by the revenue that such adjustment should be as per domestic PLR as against LIBOR rate approved by CIT (A) does not survive and therefore, the appeal of the revenue is liable to be rejected - Decided in favour of assessee. - I.T.A. No. 7026 & 7025/Mum/2013, I.T.A. No. 7608/Mum/2013 - - - Dated:- 4-12-2015 - SHRI A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has raised following ground of appeal in A.Y. 2008 - 09: Addition on account of notional interest for Share Application Money paid to AE. 1. The learned CIT (A) erred in law and on facts in upholding addition/adjustment to income being ALP/ notional interest on advance share application money given, even though there is no income from AE to which transfer pricing provisions can be applied. The reasons given by him for doing so are wrong, contrary to the facts of the case and against the provisions of law. 2. The learned CIT (A) erred in law and on facts in confirming the treatment of the advance for Share Application Money (ASAM) against which eventually shares are allotted as interest free loan without proving it as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in favour of the assessee by the following judicial Pronouncements:- a. DCIT vs. Cadila Healthcare Ltd., 39 Taxman.com 51, P. B. pages 31 to 36. b. Bharti Airtel limited vs. Addl. CIT in ITA No. 5816/Del/2012 dated 11.03.2014, P. B. pages 37 to 45 (Relevant Pages). c. Parle Biscuits Pvt. limited vs. DCIT in ITA No. 9010/Mum/2010 dated 11.04.2014, P. B. pages 46 to 56. d. Allcargo Global Logistics limited vs. ACIT in ITA No. 4909 4910/Mum/2012 dated 11.06.2014, P. B. pages 57 to 66. e. Aegis limited vs. Addl. CIT in ITA No. 1213/Mum/2014 dated 27.07.2015, P. B. pages 67 to 72 (Relevant Pages). f. DIT vs. Besix Kier Dabhol SA, 210 Taxman 151, P.B. pages 73 to 74 (Head Note). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is available on pages 13 to 14 of the paper book and as per the same, the share application money will lie as share application money till the ship is purchased and refurbished/upgraded and if the time line for doing so is not met, the assessee can recall the application money with interest and conversion of share application money into shares is at the discretion of the assessee. He submitted that under these facts, this tribunal order is not applicable in the present case because the same is distinguishable on facts. 9. We have considered the rival submissions. First we examine the applicability of the tribunal order rendered in the case of M/s PMP Auto Components (P) Ltd. vs. DCIT (Supra). We find that as per the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anything to show that any unrelated share applicant was to be paid any interest for the period between making the share application money payment and allotment of shares. In fact, in the present case, the TPO has reproduced the submissions of the assessee in Para 4.2 of his order where the assessee submitted that the amounts were provided as equity/quasi equity and subsequently converted into equity shares. Thereafter in very next Para i.e. Para 4.3 of his order, the TPO starts with this observation that the concern of the assessee that conversion of loan into equity precludes the TPO to determine the arm s length interest on the above interest free loan is covered in favour of the revenue by a tribunal order rendered in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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