9911796707
TMI Blog2021 (2) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... te Guarantee on the average value of loans provided by the assessee to its assessee enterprises - Case of the assessee is this that issuance of Corporate Guarantee by the assessee on behalf of its subsidiary company is in the nature of quasi-capital or shareholder activity and not in the nature of provision of service and, therefore, the said transaction is to be excluded from this scope of international transaction u/s 92B - HELD THAT:- Applying the rule of consistency the Ld. CIT(A) has allowed the issue in favour of the assessee by deleting the said adjustment. No reason to deviate from such stand taken by the ITAT in deciding the matter in favour of the assessee for A.Y. 2011-12 and respectfully relying upon the same we find no merit in this ground preferred by Revenue and, therefore, we dismiss the same. Disallowance of Employees Contribution to PF and ESI - assessee failed to deposit such sum within the prescribed due date in terms of the concerned rule - HELD THAT:- The issue has been decided against the assessee in view of the judgment passed in the case CIT vs. Gujarat State Road Transport Corporation [ 2014 (1) TMI 502 - GUJARAT HIGH COURT] We, therefore, find no reason t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,303/- made to the book profit u/s. 115 JB in respect of the provision of 14A of the Act:- 4. It is a settled principle of law that amount of disallowance under Section 14A cannot be added to the book profit under Section 115JB of the Act. The case of the assessee has been further strengthen, by the positive decision made in assessee's own case by the Co-ordinate Bench for A.Y. 2011-12; a copy whereof has also been submitted before us. The relevant observation made by the Bench on the identical issue is as follows:- "7. The Ld. CIT(A) deleted the adjustment of Rs. 15,77,90,288/- made to book profit under s. 115JB in respect of the provision of Sec. 14A of the Act. The short point involved in this particular matter is as to whether the amount of disallowance u/s. 14A can be added to the book profit u/s. 115JB. In appeal the first appellate authority allowed the same following the decision passed by his predecessor for the earlier years i.e. A.Ys. 2009-10 and 2011-12 in assessee's own case. It is relevant to mention that the Ld. CIT(A) also relied upon the ratio laid down in the matter of Reliance Petroproducts Pvt. Ltd. vs. ACIT in ITA No. 2324/Ahd/2009 where the Hon'ble Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of service and, therefore, the said transaction is to be excluded from this scope of "international transaction" under Section 92B of the Act. A copy of the said order has also been handed over to us. The identical issue in assessee's own case has been decided by the Co-ordinate Bench in favour of the assessee for A.Y. 2011-12. While dealing with the issue the Ld. Bench has been pleased to observe as follows:- "3. The first ground relates to the upward adjustment while determining Arms Lengths Price under the Transfer Pricing Provision. Such adjustment was made with respect to "corporate guarantee" provided by the assessee to its associate enterprises. It is the case of the assessee that such corporate guarantee by the assessee has been issued on behalf of its subsidiary company is in the nature of quashi-capital or shareholder activity and not in the nature of "provision of service" and, therefore, the said transaction is to be excluded from the scope of "international transaction". It has been placed by the Ld. AR for the assessee at the time of the hearing as well as before the authorities below that in assessee's own case of A.Y. 2010-11 the Coordinate Bench has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter that the view so take, by the coordinate bench, for the immediately preceding assessment year. We, therefore, uphold the grievances of the assessee and delete the impugned ALP adjustments. 27. As we have held that no such ALP adjustment is permissible, grievances raised by the Assessing Officer, with respect to quantification of ALP adjustment, are dismissed as infructuous. 28. As we part with the matter, we may add that a substantial question of law on this issue, in the case of Micro Ink Limited - the decision followed by us in coming to our aforesaid conclusions, has been admitted by Hon'ble jurisdictional High Court and the issue is thus pending for adjudication by Their Lordships. In this view of the factual position, even by deciding this appeal in favour of the assessee, it is nothing more than shifting of judicial forum before which the matter is now to be agitated. We have, therefore, refrained from dealing with elaborate arguments of the parties on merits at this stage. 29. In the result, and subject to the above observations, the appeal of the assessee is allowed. 8. Respectfully following the same, we confirm the findings of the First Appellate A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
