Tribunal partially allows appeal, remits matter for decision on mark-up levy, tax relief, credit amount, and interest.

The appeal was partly allowed for statistical purposes. The Tribunal set aside the order and remitted the matter to the AO/TPO for decision on the levy of mark-up on reimbursement of costs and interest on delay in receipt of reimbursement based on previous year's directions. The AO was directed to allow tax relief under section 90 after examination and provide a reasonable opportunity to the assessee. Additionally, the AO was instructed to re-examine and decide on the credit amount claimed by the appellant. The issue of charging interest under sections 234B and 234C was considered consequential.

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Issues involved: Appeal against order u/s 143(3) r.w.s. 144C(13) for A.Y. 2007-08.

Levy of mark-up on reimbursement of cost:
The appellant contended that a similar issue was raised in a previous year, where the Tribunal directed the matter to be decided based on the agreed mark-up between the assessee and its Associated Enterprises (AEs). The Tribunal set aside the impugned order and remitted the matter to the AO/TPO for decision in accordance with the earlier year's directions.

Levy of interest on delay in receipt of reimbursement:
The TPO proposed an adjustment of &8377; 1,35,885 towards interest on delay in receipt of expenses from AEs. The appellant argued that the delay computation was incorrect as it did not consider the agreed credit period. The matter was remitted to the AO/TPO for restricting the adjustment to the period beyond the agreed credit period.

Tax relief u/s Sec. 90 not allowed:
The appellant claimed double taxation credit under section 90, mistakenly classified as "Advance tax" in the return. The AO rejected the claim citing the need for a revised return. The Tribunal directed the AO to examine and allow the claim after providing a reasonable opportunity to the assessee.

Short credit of tax allowed:
The appellant challenged the credit of &8377; 1,79,44,144 instead of the claimed &8377; 1,96,04,867 without reason or opportunity. The AO was directed to re-examine and decide on the credit amount after providing a reasonable opportunity to the assessee.

Charging of interest u/s 234B and 234C:
The issue of charging interest u/s 234B and 234C was deemed consequential.

In conclusion, the appeal was partly allowed for statistical purposes, with the Tribunal directing specific actions on each issue for further consideration and decision by the AO/TPO.

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