ITAT ruled in favor of the assessee on TP adjustment for guarantee commission & ESOP expense. No disallowance u/s 14A as no exempt income earned.

ITAT ruled in favor of the assessee on TP adjustment for guarantee commission & ESOP expense. No disallowance u/s 14A as no exempt income earned. https://www.taxtmi.com/highlights?id=78330 The ITAT upheld the CIT(A)'s decision to restrict TP adjustment on guarantee commission to 0.2% for one financial year, finding TPO's 0.77% adjustment unjustified. The ITAT also supported CIT(A)'s deletion of 0.25% mark-up without basis. Regarding ESOP expenses, ITAT agreed with CIT(A) that discount on ESOP shares was deductible u/s 37(1) as it was not a capital expenditure. Disallowance u/s 14A was rejected as no exempt income was earned, following precedents that disallowance cannot exceed exempt income. Revenue's appeal was dismissed. en-us Mon, 10 Jun 2024 07:43:43 +0530 Mon, 10 Jun 2024 07:43:43 +0530 TaxTMI RSS Generator ITAT ruled in favor of the assessee on TP adjustment for guarantee commission & ESOP expense. No disallowance u/s 14A as no exempt income earned. https://www.taxtmi.com/highlights?id=78330 The ITAT upheld the CIT(A)'s decision to restrict TP adjustment on guarantee commission to 0.2% for one financial year, finding TPO's 0.77% adjustment unjustified. The ITAT also supported CIT(A)'s deletion of 0.25% mark-up without basis. Regarding ESOP expenses, ITAT agreed with CIT(A) that discount on ESOP shares was deductible u/s 37(1) as it was not a capital expenditure. Disallowance u/s 14A was rejected as no exempt income was earned, following precedents that disallowance cannot exceed exempt income. Revenue's appeal was dismissed. Highlights Income Tax Mon, 10 Jun 2024 07:43:43 +0530 https://www.taxtmi.com/highlights?id=78330