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TMI Blog2019 (7) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... tish Chatterjee and Mr. Upendra Lokegaonkar i/b. Mint and Confreres for the respondent. P.C.: This appeal is filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal ("Tribunal" for short) to raise the following question for our consideration: "Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the adjustment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ize the transaction. It was held that in the present case there was no interest free loan by the assessee to its AE. 3. The learned counsel for the Revenue vehemently contended that the Tribunal has committed serious error. He pointed out that a similar question has been admitted by this Court in Income Tax Appeal No.1583/2016. 4. On the other hand, the learned counsel for the assessee opposed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion no.1 arises out of the action of the Revenue to tax notional interest in the hands of the assessee through transfer pricing. The facts are that, during the period relevant to the assessment year in question, the assessee had subscribed to redeemable preferential shares of its Associated Enterprises ("AE" for short) and redeemed some of its shares at par. The Transfer Pricing Officer ("TPO" f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oadly in agreement with the view of the Tribunal. The facts on record would suggest that the assessee had entered into a transaction of purchase and sale of shares of an AE. Nothing is brought on record by the Revenue to suggest that the transaction was sham. In absence of any material on record, the TPO could not have treated such transaction as a loan and charged interest thereon on notional bas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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