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2022 (6) TMI 656 - AT - Income TaxTP Adjustment - adjustment made on account of interest of loan on the amount advanced by the assessee to its AE - HELD THAT - We find that identical issue arose in Revenue s appeal for A.Y. 2011-12, 2013-14 2014-15. The Co-ordinate Bench of Tribunal after noting the fact that identical issue arose in assessee s own case in earlier years and the Tribunal in A.Y. 2008-09 2009-10 2022 (5) TMI 819 - ITAT DELHI has decided the issue in favour of the assessee. The Co-ordinate Bench of Tribunal thereafter upheld the findings of CIT(A) and dismissed the appeal of the Revenue. Before us, Revenue has not placed any material on record to demonstrate that the facts in the case in the year under consideration and that of earlier years are different and distinguishable and further no material has been placed by the Revenue to demonstrate that the decision rendered by the Tribunal in assessee s own case for earlier years has been stayed/ set aside/ overruled by higher judicial forum. In such a situation, we find no reason to interfere with the order of CIT(A). Thus grounds of the Revenue are dismissed.
Issues:
Appeal against order of CIT(A) for AY 2015-16 - Interest on loan to AE - Applicability of SBI Market Lending Rate - Deletion of interest adjustment by CIT(A) - Identical issue in earlier years - Grounds raised by Revenue - Dismissal of appeal of Revenue. Analysis: The appeal pertains to the order of the Commissioner of Income Tax (Appeals)-29, New Delhi for Assessment Year 2015-16. The assessee, engaged in manufacturing and sale of telecom products, declared a loss in its return of income. The assessment was framed under section 143(3) of the Act, determining the total taxable income. The Revenue appealed against the CIT(A)'s order granting substantial relief to the assessee. The grounds raised by the Revenue included the reliance on a judgment in the appellant's own case for AY 2012-13, applicability of SBI Market Lending Rate, and deletion of addition on account of interest on loan to AE. During assessment proceedings, it was observed that the assessee had advanced a loan to its AE without charging any interest. The AO proposed interest adjustment at LIBOR rate, resulting in a substantial adjustment on account of not charging interest on the loan to its AE. The CIT(A), following the precedent for AY 2012-13, decided in favor of the assessee. The Revenue challenged this decision before the ITAT. The ITAT noted that the issue of interest on the loan to AE had arisen in the assessee's case in earlier years as well. The Tribunal had previously decided in favor of the assessee for AY 2008-09 and 2009-10. In the absence of any material demonstrating differences in facts between the current year and earlier years, or any higher judicial forum overturning the Tribunal's decision in the assessee's favor, the ITAT upheld the CIT(A)'s order. The Revenue's grounds were dismissed, and the appeal was consequently rejected. In conclusion, the ITAT dismissed the appeal of the Revenue, affirming the decision of the CIT(A) in favor of the assessee. The judgment highlighted the importance of consistency in decisions across years and the necessity for the Revenue to provide substantial evidence to challenge previous favorable rulings.
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