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TMI Blog2015 (11) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee submitted that the first issue that arises for consideration is adjustment of Rs. 5,49,000 in respect of corporate guarantee provided to associated enterprise, namely, M/s. Redington Distribution Pte Ltd., Singapore. 3. Referring to the order of this Tribunal dated June 26, 2015 in the assessee's own case for the assessment year 2007-08 (Redington (India) Ltd. v.Addl. CIT [2015] 41 ITR (Trib) 646 (Chennai)), learned counsel submitted that an identical issue came before this Tribunal and this Tribunal found that the corporate guarantee given by the assessee to the associated enterprise does not involve any cost to the assessee, therefore, it has no bearing on the profit, income, loss or assets of the assessee. Therefore, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o which the arm's length price adjustment has to be made. Since the facts are identical for the year under consideration, this Tribunal is of the considered opinion that the decision of this Tribunal in the assessee's own case for the assessment year 2007-08 (Redington (India) Ltd. v. Addl. CIT [2015] 41 ITR (Trib) 646 (Chennai)) is equally applicable. Accordingly, by following the decision of this Tribunal in the assessee's own case for the assessment year 2007-08, the addition made by the lower authorities to the extent of Rs. 5,49,000 is deleted. 6. The next issue that arises for consideration is disallowance of trade mark licence fee. 7. Shri R. Vijayaraghavan, learned counsel for the assessee submitted that the very same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... next issue that arises for consideration is disallowance of Rs. 2,55,33,000 under section 14A of the Act. 11. Shri R. Vijayaraghavan, learned counsel for the assessee submitted that the investment was made out of the internal accruals. Learned counsel further submitted that the paid-up capital and reserves and surplus of the assessee for the year ending March 31, 2008 was Rs. 5,69,55,22,000. The investment in Indian companies were only to the extent of Rs. 89,07,33,000. Learned counsel further submitted that the assessee has not received any income by way of dividend during the year under consideration. Referring to the decision of this Tribunal in Asst. CIT v. Shri M. Baskaran in I. T. A. No. 1717/Mds/2013 dated July 31, 2014, learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has rightly confirmed the disallowance made by the Assessing Officer. 13. We have considered the rival submissions on either side and also perused the material available on record. The assessee now claims before this Tribunal that the investment was made out of its own funds accrued internally. The assessee also claims that as on March 31, 2008 the capital and reserves and surplus was available to the extent of Rs. 5,69,55,22,000 and the investment was made to the extent of Rs. 32,082.47 lakhs. In the immediately preceding year the investment was Rs. 23,808.73 lakhs. No material is available on record with regard to internal accrual of funds in the regular course of its business activity. As rightly submitted by learned counsel, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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