2018 (7) TMI 1956

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....ssee against the order of CIT(A)-15, Mumbai dated 20/08/2014 in the matter of order passed u/s.143(3) of the IT Act. 2. Only grievance of assessee relates to making upward adjustment of ALP by TPO of Rs. 58,29,300/- in respect of guarantee fee in respect of corporate guarantee provided to the assessee's foreign subsidiary. 3. Rival contentions have been heard and record perused. Facts in brief....

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....inder Ltd., 378 ITR 57 wherein under similar facts and circumstances, guarantee commission was restricted to 0.5%. Learned AR also placed on record various decisions of Co-ordinate Benches in case of Videocon Industries Ltd., 186 TTJ 353 and M/s. Asian Paints Ltd., 149 ITD 551, Nimbus Communication Ltd., 45 ITD 582 (Mum), Reliance Industries Ltd., ITA No.4475/Mum/2017 and Godrej Household Products....

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....ssion. Accordingly, AO is directed to compute guarantee fees @0.9%. 6. Next grievance pertains to addition on account of interest charged On loan advanced to AE amounting to Rs. 59,172/-. Issue under consideration is squarely covered by the decision of Delhi High Court in the case of Cotton Naturals (I) Pvt. Ltd., 55 taxmann.com 523 wherein it was held that arm's length interest rate for loan ad....

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....d deduction u/s.35D of Rs. 60,04,416/- as against the original claim of Rs. 23,20,680/-. However, by misinterpreting the decision of Goetze India Ltd, the AO declined to consider the revised claim. Similarly, during the course of assessment proceedings, the assessee filed its letter dated 01/03/2013 claiming therein additional depreciation of Rs. 80,50,615/- under Section 32(1)(ii)(a) of the Incom....