9911796707
TMI Blog2017 (10) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act, 1961 (for short 'the Act'), pertaining to the assessment year 2008-09. ITA No. 687/MUM/2013 (Assessment Year: 2008-2009) 2. The assessee has raised the following effective grounds of appeal against the impugned order passed by the Ld. CIT (A):- "Ground No. I: Addition on account of Arm's Length Adjustment to income from interest on loans advanced to subsidiaries: 1. On the facts and in the circumstances of the case and in law, the Hon'ble Commissioner of Income Tax (Appeals)-15, Mumbai ("CIT (A))" erred in directing the Additional Commissioner of Income Tax- 10(1), Mumbai ("the AO") and the Additional Commissioner of Income Tax (TP)-II(2) ("the TPO") to re-compute the addition u/s 92C of the Income Tax Act, 1961 (" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he aforesaid period. 2. The appellant prays that the action of the Hon'ble CIT (A) to reclassify equity infusion in the wholly Owned Subsidiary into loan be held as ab-initio void and bad-in-law and consequently direction given to the AO to make addition be withdrawn. Ground No. IV: Disallowance of weighted deduction under section 35(2AB) of the Act on expenses of Rs. 18,81,14,518/- 1. On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) of the Act on expenses of Rs. 18,81,14,518/- on the alleged ground that these expenses were not incurred for the in-house research by the Appellant. 2. The Appellant prays that the Appellant be granted weighted deduction u/s 35(2AB) on expenses of Rs. 18,81,14,518/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, whether CIT (A) erred in equating the risk in corporate guarantee with that in bank guarantee even when the assessee cannot spread its risk to others as the assessee is not engaged in the business of issuing guarantees whereas the bank can spread charged by the bank is reflected such reduced risk. 2. (iv) On the facts and circumstances of the case, whether CIT (A) erred in considering bank guarantee commission rate proposed by HSBC as CUP when the risk in issuing corporate guarantee for the assessee is higher than for a bank issuing a bank guarantee. 2 On the facts and circumstances of the case and in law whether the CIT (A)'s erred in deleting adjustment of difference on interest for loans advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k on account of foreign exchange risk, which is measured by way of foreign exchange premium on INR-GBP/INR-USD/INR-EURO contracts which was hovering around 3% p.a. during the F.Y. 2007-08. 2(vi) On the facts and circumstances of the case, whetehr the CIT (A) erred in adopting LIBOR plus 150/250 basis points when the assessee is bearing additional risk on account of credit risk and tenure risk involved in extending loan by the assessee to its AEs. 3. On the facts and circumstances of the case, whether the CIT (A) erred in deleting adjustments on account of interest treated as loan in respect of transfer of shares: 3 (i) On the facts and circumstances of the case, whether the CIT (A) erred in giving a finding which otherwise does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, whether the CIT (A) erred in deleting the disallowance of ' Provision for bad and doubtful debts' amounting to Rs. 3,69,50,000/- by ignoring the fact that the assessee is not eligible for deduction of provision for bad debts as per the provisions of sec. 36(1) (vii) of the Act. 8. On the facts and circumstances of the case, whether the CIT (A) erred in deleting the addition made on account of prior period expenses of Rs. 51,65,056/- (being Royalty fee) which needs to be considered for calculation of Book Profit u/s 115JB, without appreciating the fact that as per the mercantile system of accounting as followed by the assessee the expenses are allowed in the year of accrual only. 9. On the facts and circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earning the exempt income have to be added back for computing the net profit u/s 115JB." 4. These cases were fixed for hearing on 26/07/2017. On the said date, the Ld. counsel for the assessee pointed out that these cross appeal are arising out of the draft order passed by the AO. Since, the AO has also passed a final order, against which the assessee has filed an appeal before CIT (A) and the assessee and department have both come up in appeal before the Tribunal against the CIT (A) order arising out of the final order. Therefore, it was submitted that the appeals arising out draft order may be dismissed as infructuous. The matter was kept for further clarification for 11/08/2017. Today the Ld. counsel for the assessee presented an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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