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TMI Blog2023 (7) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... urnment letter has been moved the Representative M/s Nimesh Thar & Co., Chartered Accountants stating that the directors/promoters of the assessee company are under judicial custody and hence it is not able to take any decision. We notice that the authorized representative has been taking adjournment citing similar reasons. Hence we proceed to dispose of the appeals ex-parte, without presence of the assessee. 3. The assessee is a builder and developer. The assessee had entered into international transactions with its Associated Enterprise located in Dubai in the form of giving loans. Hence the AO referred the matter of determination of Arms Length Price of interest receivable from the above said loans to Transfer Pricing Officer (TPO) in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4% and 5.08% respectively in those years, while the average LIBOR rate was 2.853742 and 1.284833 in those years respectively. It appears that no TP adjustment was made in those years. Considering these facts, we are of the view that interest rate may be fixed at LIBOR + 300 basis points. Accordingly, we direct the AO/TPO to recompute the transfer pricing adjustment by adopting interest rate of average LIBOR + 300 basis points. 5. We shall now take up the appeal for AY 2012-13. The first issue urged in this year relates to the transfer pricing adjustment made in respect of outstanding loan due from its AE located in Dubai. In this year, the Ld DRP noticed that the assessee has not made provision for foreign exchange rate fluctuation in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove said amount relating to purchase of foreign exchange. In our view, the assessee may be provided with one more opportunity to offer explanations. Accordingly, we restore this issue to the file of AO for examining it afresh. 8. The next issue relates to the addition of interest income of Rs. 21,947/- from M/s Reliance infrastructure, found in ITS data, but not reported by the assessee in the return of income. We notice that the assessee has accepted this addition before the AO. Hence we dismiss this ground of the assessee. 9. We shall now take up the appeal filed for AY 2013-14. The first issue relates to the addition relating to transfer pricing adjustment on the outstanding loan. As in 2012-13, the ld DRP directed the AO to compute in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for AY 2016-17. The first issue urged in this year relates to the transfer pricing adjustment made in respect of outstanding loan due from Dubai AE by computing interest at higher rate. As in 2012-13, the ld DRP directed the AO to compute interest adopting interest rate of SBI PLR + 300 basis points. In 2012-13, we directed the AO to adopt interest rate of average LIBOR + 300 basis points. Following the same, we modify the directions given by Ld DRP and direct the AO to adopt interest rate of average LIBOR + 300 basis points and compute the transfer pricing adjustment accordingly. 13. The next issue relates to the addition made u/s 14A of the Act under normal provisions and u/s 115JB. We notice that the details of quantum of exempt income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest was payable to Punjab and Maharashtra Co-operative Bank. We also notice that the interest payable to a co-operative bank was brought within the ambit of sec.43B of the Act with effect from AY 2018-19. Accordingly, we direct the AO to delete this disallowance and consequently, the same is not required to be deducted from the value of Work in Progress. 17. The last issue relates to the disallowance of claim of set off of brought forward loss. In our view, this issue requires re-consideration. Accordingly, we restore this issue to the file of AO. We also direct the assessee to furnish all the relevant details to the assessing officer. 18. We shall now take up the appeal filed by the assessee for AY 2017-18. The first issue urged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish all the relevant details to the assessing officer. 21. The next issue relates to the disallowance of Rs. 3,03,000/- made u/s 40(a)(ia) of the Act. We notice that the assessee has accepted this disallowance before the AO and hence we reject this ground of the assessee. 22. The next relates to the disallowance made u/s 43B of the Act and reducing the same from closing Work in Progress. We notice that the interest was payable to Punjab and Maharashtra Co-operative Bank. We also notice that the interest payable to a co-operative bank was brought within the ambit of sec.43B of the Act with effect from AY 2018-19. Accordingly, we direct the AO to delete this disallowance and consequently, the same is not required to be deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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