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TMI Blog2015 (11) TMI 1745X X X X Extracts X X X X X X X X Extracts X X X X ..... eal:- 2. The assessee has raised five substantive grounds of appeal and has also raised one additional ground. At the very outset, Ld. Senior Counsel for the assessee stated that the issue involved in the grounds of appeal are covered by the decision of the Tribunal in assessee' own case for earlier assessment years. Ld. DR fairly conceded to this. 3. We have given thoughtful consideration to the orders of the authorities below and with the assistance of the Ld. Senior Counsel, we have gone through the earlier decision of the Tribunal in assessees's own case. We find force in the contention of the Ld. Senior Counsel, except for Ground No.3 and the additional ground, the issues involved in all other grounds have been decided by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.3 relates to the disallowance made under section 14A r.w. Rule 8D of the Act. The Assessing Officer has considered this issue at Page-16 at Para-7 of his order. During the course of the scrutiny assessment proceedings the Assessing Officer noticed that the assessee has earned dividend income from domestic companies/mutual funds at Rs. 24,33,73,938/-, which is claimed as exempt under section 10 of the Act. The assessee was asked to explain why disallowance should not be made under section 14A r.w. Rule 8D of the Act. The assessee filed a detailed reply vide a letter dated 22/7/2011 explaining that the assessee has suo-motu offered Rs. 15,21,748/- as expenditure attributable to the earning of the exempt income. The Assessing Officer did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee and the disallowance is confirmed by the CIT(A). We accordingly set aside the finding of the CIT(A) and direct the Assessing Officer to delete the impugned addition. Ground No.3 is accordingly allowed. 7. Ground No.4 relates to the determination of arm's length price with respect to guarantee commission of 0.20% received by the assessee from its associated enterprise. As mentioned elsewhere, an identical issue was considered by the Tribunal in assessee's own case in assessment year 2007-08 in ITA Nos.2126/Mum/2012 and 2178/Mum/2012. We find that similar issue was considered by the Tribunal at Para-7 of its order and at Para-10 the Tribunal followed the findings given by the Co-ordinate Bench in assessment year 2006-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India and Egypt treaty. 9.1 Ld. Senior Counsel drew our attention to the transfer pricing report and pointed out that the royalty income of Rs. 3.17 crores was duly explained in the transfer pricing study report, which is exhibited at Pages 446 & 447 of the Paper Book. Ld. Senior Counsel further drew our attention to the agreement entered into between the assessee and M/s. SCIB Chemicals SAE, Egypt, which is exhibited at Pages 475 to 477 of the paper book. Ld. Senior Counsel further pointed out that the royalty income of Rs. 3.17 crores have been duly explained in the audit report. It is the say of the Ld. Senior Counsel that all the facts relating to the royalty income were before the lower authorities and only the claim is raised for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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