TMI Blog2021 (8) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... to recompute the ALP of the transactions of payment of interest on debentures/CCDs. Thus the departmental grounds are dismissed. Since the matter of ALP determination has been sent back to the AO/TPO, the direction given by the ld. CIT(A) in this regard, which forms the subject matter of the assessee s ground, has become infructuous. Education Cess and Secondary and Higher Secondary Cess - whether claim may be allowed as a deduction while computing the total income of the assessee company? - HELD THAT:- The issue raised through the additional ground is no more res integra in view of the judgment of Hon ble jurisdictional High Court in Sesa Goa Lt. [ 2020 (3) TMI 347 - BOMBAY HIGH COURT] in which it has been held that Education Cess i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne. A return was filed declaring total income of ₹ 41.87 crore. The assessee reported certain international transactions and Specified Domestic transactions (SDTs) in Form No. 3CEB. The Assessing Officer (AO) made a reference to the Transfer Pricing Officer (TPO) for determining the Arm s Length Price (ALP) of the transactions. Instantly, we are concerned with the international transaction of interest of CCDs paid to IIRF Cyprus V. Holding Limited amounting to ₹ 8,84,87,000/- and the Specified Domestic transaction of payment of interest on debentures to M/s. City Corporation Limited amounting to ₹ 9,27,50,000/-. The assessee applied the Comparable Uncontrolled Price (CUP) method to demonstrate that the international transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has countenanced the assessee s stand by holding that the assessee rightly issued debentures and CCDs to its AEs and the AO was not justified in re-characterizing the transactions. As regards the ALP determination, the Tribunal restored the matter to the file of AO/TPO for a fresh determination. Since the facts and circumstances of the instant appeal are mutatis mutandis similar to those of the preceding year, respectfully following the precedent, we approve the view taken by the ld. CIT(A) and hold that the AO was not justified in re-characterising the transaction of issue of debentures/CCDs as that of equity shares. As regards the ALP determination, we again follow the view taken by the Tribunal for the immediately preceding year and dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, the Tribunal has jurisdiction to examine the same. Having gone through the subject matter of the additional ground taken by the assessee, it is discernible that it raises a pure question of law. We, therefore, admit the same. 8 On merits, the issue raised through the additional ground is no more res integra in view of the judgment of Hon ble jurisdictional High Court in Sesa Goa Lt. Vs. JCIT (2020) 423 ITR 426 (Bom.) in which it has been held that Education Cess is not disallowable expenditure u/s.40(a)(ii) of the Income tax Act. 1961 (hereinafter also called as `the Act ). Similar view was earlier taken by the Hon ble Rajasthan High Court in Chambal Fertilisers and Chemicals Ltd. and Another Vs. JCIT (2018) 102 CCH 0202 (Raj- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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