TaxTMI 
TaxTMI 
2016 (6) TMI 1369
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....e following grounds of appeal: 1. "That the order of the learned lower authorities in so far it is prejudicial to the interests of the appellant is bad and erroneous in law and against the facts and circumstances of the case. 2. That the learned lower authorities erred in law and on facts in disallowing the claim of the appellant u/s 80JJAA of the Act. 3. That the learned lower authorities erred in law and on facts in holding that the new additional regular workmen employed during the previous year should be more than 100. 4. Without prejudice to Grounds no. 2 and 3 above, the learned lower authorities ought to have allowed the weighted deduction for the claim in respect of the regular workmen employed du....
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....ansactions, the learned lower authorities ought to have held that the interest paid on loan transactions are also ALP. 11. The learned lower authorities erred in law and on facts in determining (a) the amount of loan outstanding at Rs. 12,94,69,594 (b) the ALP interest at Rs. 28,09,490 and (c) actual interest paid at Rs. 1,76,90,420 and thereby making a TP adjustment of Rs. 1,48,80,929. 12. That the adjustment made by the learned TPO in his order dated 21.01.2016 is totally contrary to the directions of the Hon'ble DRP and is liable to be quashed. 13. That the order passed by the learned TPO on 21.01.2016 is violative of principles of natural justice as no opportunity was given to the appellant before passing ....
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....ions. The TPO, vide order dated 'nil' suggested adjustment of Rs. 123,43,326/- u/s 92CA of the Act in respect of interest paid to Associated Enterprise [AE] on the loans borrowed by the assessee-company as follows: Euro Amt in(INR) ALP Express Adj Amount 12,94,69,594 12,94,69,594 Interest 176, 90,420 53,47,094.232 12343325.77 Average int Charges 13.66% 4.13% Accordingly, draft assessment order dated 03/03/2015 was passed by the AO incorporating above transfer pricing adjustment and disallowance of the claim u/s 80JJA of the Act at a total income of Rs. 22,90,58,705/-. 4. Being aggrieved, objections were filed before th....
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....r also. 7. As regards disallowance of the claim u/s 80JJA of the Act, the AO has disallowed the claim by holding that the aasessee company had not employed new employees more than 100 during the previous year relevant to assessment year under consideration. On a perusal of the provisions of section 80JJA of the Act, which is extracted below, we do not find that any such condition is imposed in the said provision. The provisions of section 80JJA are reproduced below: "Deduction in respect of employment of new workmen. 80JJAA. (1) Where the gross total income of an assessee, being an Indian company, includes any profits and gains derived from any industrial undertaking engaged in the manufacture or production of article or thing, ....