TaxTMI 
TaxTMI 
2018 (4) TMI 1205
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....f Rs. 1,74,090/- on account of unreconciled income from ITS record. (c) Addition of income based on TDS certificate. (d) Transfer pricing adjustment (e) Disallowance of mark to market loss of forward derivate contracts. 2. The assessee-company is engaged in the business of manufacturing of industrial valves and accessories. Assessment for the year under consideration was completed by the Assessing Officer u/s. 143(3) read with section 144C(3) of the Act by making various additions. In the appellate proceedings before learned CIT(A), the appeal of the assessee was partly allowed. Still aggrieved, the assessee has filed this appeal before the Tribunal. 3. First issue relates to disallowance made u/s. 14A of th....
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....ement furnished by the assessee, we noticed that the assessee is having own funds of Rs. 5461.25 lakhs and Rs. 6396.66 lakhs as at the beginning and as at the end of the year respectively. The value of investments stands at Rs. 1101.21 lakhs as at the beginning and also as at the end of the year. The above fact shows that the own funds available with the assessee is in far excess of the value of investments and hence as per the decision rendered by Hon'ble Jurisdictional Bombay High Court in the case of HDFC Bank Ltd. (366 ITR 505), no disallowance out of interest expenditure is called for. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and direct the Assessing Officer to delete the disallowance under rul....
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....erential interest is accounted. Accordingly, it was submitted that the difference between ITS data and accounts of the assessee, if any, would get automatically adjusted in the subsequent year when the deposits are closed. The above said explanation of the assessee was not convincing to the AO and hence the Assessing Officer added the difference amount of Rs. 1,74,090/- and the same was also confirmed by the learned CIT(A). 7. We have heard the parties on this issue and perused the record. We noticed that the neither the Assessing Officer nor the assessee has given details of breakup of receipts shown in the ITS record and the accounts of the assessee. Before the tax authorities, the assessee has pointed out that the difference has mainl....
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....itted by other party. In the alternative, he submitted that if income of Rs. 1,24,282/- is assessed in the hands of the assessee, corresponding TDS should be given credit. We find merit in the alternative contention of the assessee and accordingly, we direct the Assessing Officer to give corresponding TDS credit to the assessee. 10. The next issue relates to addition of Rs. 1,82,598/- on account of TP adjustment. 11. The Assessing Officer noticed that the assessee has entered into international transactions of giving advances to its AE named Virgo Valves and Controls (UK) Ltd., and hence, the Assessing Officer referred the matter to the Transfer Pricing Officer (TPO). The TPO noticed that the assessee has not charged any interest on t....
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....parties on this issue. We noticed that the assessee has tried to justify non-collection of interest from its AE by submitting that it did not pay commission to its AE on the sale procured by it. However, we noticed that the assessee has not brought on record any material to substantiate its claim that its AE did some marketing efforts on behalf of the assessee. No correspondence exchanged between the parties that both the parties are waiving their right to collect interest/commission in view of cross services, was shown to tax authorities or to us. In the absence of any material to support the submissions, we are unable to accept the oral submissions. In any case, as submitted by learned DR, loan transactions and the agency transaction, if ....