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TMI Blog2016 (3) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 30th January 2015 passed under section 1443(3) r.w.s. 144C(13) of the Act, the Assessing Officer is aggrieved of the certain directions given by the DRP to him. 2. Grievances raised by the assessee are as follows: GROUND NO. 1: ADDITION ON ACCOUNT OF TRANSFER PRICING ADJUSTMENT OF Rs. 1,13,40,000/- IN RELATION TO CORPORATE GUARANTEES GIVEN ON BEHALF OF OVERSEAS SUBSIDIARIES OF THE APPELLANT: 1.1 erred in confirming the transfer pricing adjustment of Rs. 1,13,40,000/- on account of corporate guarantees given by the Appellant to the bankers on behalf of its AE, without appreciating the commercial and economic interest of the Appellant in the AE; 1.2 erred in not appreciating that providing corporate guarantee is not an internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciating that during the assessment year 2010- 2011, there was no % exempt income earned on investment by the Assessee. 2.2 erred in calculating the notional expenditure under Rule 8D of the Rules on account of making long term Investments without acknowledging the fact that such investments were made to the foreign subsidiary company. 2.3 erred in not appreciating that no fresh investment was made in the year under consideration and that in the previous years, disallowance under Section 14A on the same Long Term Investment had already been made by the AO. 2.4 erred in placing reliance on the decision of Hon'ble Bombay High Court in the case of M/s. Godrej & Boyce Mfg. Co. Ltd, without appreciating that the facts of the said case ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. Having heard the rival contentions, and having perused the material on record, we see merits in the plea of the assessee. When there is no income in the hands of the assessee, which is exempt from tax, there cannot be any occasion to make disallowance under section 14A. This was so held by Hon'ble Delhi High Court in the case of CIT vs. Winsome Textile Industries Ltd 319 ITR 204 (P&H), which has been followed by many other Hon'ble High Courts as well, such as Hon'ble Gujarat High Court in the case of CIT Vs Corrtech Energy Pvt Ltd [(2015) 372 ITR 97 (Guj) and by Hon'ble Delhi High Court in the case of Cheminvest Ltd Vs CIT [(2015) 378 ITR 33 (Del)]. Respectfully following the views of Hon'ble Courts above, we uphold the grievance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions u/s. 80IB(8A) r.w.r. 18DA laid down in the Income-Tax Act, 1961, and the Income Tax Rules,1962, for claiming deduction u/s. 80IB(8A)?" 3. Whether on the facts and circumstances of the case and in law, the Hon'ble DRP erred in allowing the appeal of the assessee on the issue of software expenditure of Rs. 95,15,667/- on acquisition of annual licenses as revenue expenditure without appreciating the fact that the software expenditure was disallowed by the AO and such expenditure was capitalized and depreciation @ 60% was allowed on such capital expenditure." 13. As regards the grievances raised by the Assessing Officer in the first and second ground of appeal set out above, learned representatives fairly agree that both the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X
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