TaxTMI 
TaxTMI 
2017 (10) TMI 1218
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....passed u/s 143 (3) r/w section 144C of the Income Tax Act, 1961 (for short 'the Act'), pertaining to the assessment year 2008-09. ITA No. 687/MUM/2013 (Assessment Year: 2008-2009) 2. The assessee has raised the following effective grounds of appeal against the impugned order passed by the Ld. CIT (A):- "Ground No. I: Addition on account of Arm's Length Adjustment to income from interest on loans advanced to subsidiaries: 1. On the facts and in the circumstances of the case and in law, the Hon'ble Commissioner of Income Tax (Appeals)-15, Mumbai ("CIT (A))" erred in directing the Additional Commissioner of Income Tax- 10(1), Mumbai ("the AO") and the Additional Commissioner of Income Tax (TP)-II(2) ("the TPO") to re-co....
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....t of shares and directing the AO to calculate interest at 6 months LIBOR plus 150 basis points for the aforesaid period. 2. The appellant prays that the action of the Hon'ble CIT (A) to reclassify equity infusion in the wholly Owned Subsidiary into loan be held as ab-initio void and bad-in-law and consequently direction given to the AO to make addition be withdrawn. Ground No. IV: Disallowance of weighted deduction under section 35(2AB) of the Act on expenses of Rs. 18,81,14,518/- 1. On the facts and in the circumstances of the case and in law, the Hon'ble CIT (A) of the Act on expenses of Rs. 18,81,14,518/- on the alleged ground that these expenses were not incurred for the in-house research by the Appellant. ....
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....ntee when bank guarantee cannot be issued against a loan and also when the risk in case of corporate guarantee is higher than that in bank guarantee. 1. (iii) On the facts and circumstances of the case, whether CIT (A) erred in equating the risk in corporate guarantee with that in bank guarantee even when the assessee cannot spread its risk to others as the assessee is not engaged in the business of issuing guarantees whereas the bank can spread charged by the bank is reflected such reduced risk. 2. (iv) On the facts and circumstances of the case, whether CIT (A) erred in considering bank guarantee commission rate proposed by HSBC as CUP when the risk in issuing corporate guarantee for the assessee is higher than for a ban....
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....een adopted for benchmarking interest rates. 2(v) On the facts and circumstances of the case, whether the CIT (A) erred in adopting LIBOR plus 150 /250 basis points when the assessee is bearing additional risk on account of foreign exchange risk, which is measured by way of foreign exchange premium on INR-GBP/INR-USD/INR-EURO contracts which was hovering around 3% p.a. during the F.Y. 2007-08. 2(vi) On the facts and circumstances of the case, whetehr the CIT (A) erred in adopting LIBOR plus 150/250 basis points when the assessee is bearing additional risk on account of credit risk and tenure risk involved in extending loan by the assessee to its AEs. 3. On the facts and circumstances of the case, whether the CIT (....
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....the fact that the payments were made by the assessee to non-residents on account of pilot bio-study, clinical research, whereas per section 195 of the Act, the assessee is liable to withhold tax on such payments which the assessee did not do so. 7. On the facts and circumstances of the case, whether the CIT (A) erred in deleting the disallowance of ' Provision for bad and doubtful debts' amounting to Rs. 3,69,50,000/- by ignoring the fact that the assessee is not eligible for deduction of provision for bad debts as per the provisions of sec. 36(1) (vii) of the Act. 8. On the facts and circumstances of the case, whether the CIT (A) erred in deleting the addition made on account of prior period expenses of Rs. 51,65,056/- (b....
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.... 12. On the facts and circumstances of the case, whether the CIT (A) erred in deleting deleting the addition of 'expenses disallowable u/s 14A Rs. 22,81,641/- which needs to be considered for calculation of Book Profit u/s 115JB, without appreciating the fact that the expenses attributable to earning the exempt income have to be added back for computing the net profit u/s 115JB." 4. These cases were fixed for hearing on 26/07/2017. On the said date, the Ld. counsel for the assessee pointed out that these cross appeal are arising out of the draft order passed by the AO. Since, the AO has also passed a final order, against which the assessee has filed an appeal before CIT (A) and the assessee and department have both come up in appe....