TaxTMI 
TaxTMI 
2025 (8) TMI 143
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....IT(A)-42 relates to Assessment Year 2010-11. 2. Brief facts of the case as coming out from the orders of authorities below are that the assessee is a company incorporated in India on 3rd Mary, 2006. Initially the name of the company was "M/s South Asia Breweries Private Limited". Thereafter, the name of the company has been changed to "Carlsberg India Private Limited" w.e.f. 23rd February, 2009. The assessee company is engaged in the business of manufacturing and sale of alcoholic beer with manufacturing facility at Paonta Sahib, Alwar, Aurangabad, and Kolkata for the impugned assessment year. The assessee has filed his return of income on 30th September, 2010 declaring loss of Rs. 1,072,882,035/-. The return of income filed by the asses....
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....ntion of the assessee counsel is that the assessee has advanced fund to its subsidiary on account of commercial expediency. It is the submissions of the counsel for the assessee that in Assessment Year 2008-09, the assessee has charged annual interest on 11.5% from its subsidiary and in Assessment Year 2009-10, the assessee has charged interest of 12% from its subsidiary. Ld. Counsel for the assessee pointed out that for the impugned assessment year, the AO has applied the rate of 15% on outstanding loan of Rs. 2.25 lac and made addition of Rs. 33,75,000/- ignoring the submissions of the assessee that the loans were advanced on account of commercial expediency. The next submissions of the Counsel are that the own funds of the assessee are m....
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.... u/s 36(1)(iii) can be made in this case. Further our view is fortified by the judgment of Hon'ble Supreme Court in the case of CIT vs. Reliance Industries reported I [2019] 102 taxman.com 52 wherein the Hon'ble Supreme Court has held that where the assessee is having sufficient interest free funds then it can be presumed that investments were made from interest free funds available with the assessee. So far as the reliance on the order of Abhishek Industires (supra), we observe that Hon'ble Apex Court in the case of Munjal Sales (supra) has already reversed this judgment, and hence the contention of the Ld. DR is of no use. 13. Coming to the next issue of disallowance of 14A, at the outset, Ld. Counsel for the assessee pointed out that ....
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.... that the CIT(A) has not approved the method of Bright Line Test as adopted by TPO for computing the adjustments qua AMP expenses. It has further been submitted that the Ld. CIT(A) has relied upon the orders of Hon'ble Delhi High Court in the case of SoniEricssion Mobile Communication India (P) Ltd. vs. vs. CIT reported in [2015] 374 ITR 118 (Del-HC). Lastly it is pointed out that the Ld. CIT(A) has further observed that the assessee has entered into Advance Pricing Agreement with CBDT and carried out a role back of four years from Assessment Year 2011-12 to 2014-15. After applying a rate of 3.5% of the gross sales and 4.5% of the gross sales where the gross sales do not increase 500 Crore rupees. The Ld. CIT(A) has applied the similar rate....
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....A no. 6981/Mum./2012) Tieto IT Services India Private Limited v Dy. Commissioner of Income Tax, Circle - 7, Pune [ITA No.1398/PUN/2015] * AXA Technologies Shared Services Pvt. Ltd. v Dy. Commissioner of Income Tax, Circle 11(1), Bangalore [I.T. (T.P)A. No.659/Bang/2012] 9.35 I find that the courts while deciding the above issue of applying APA methodology even for non-APA years, took note of the fact that there has been no change in the FAR analysis of assessee and the AEs in this assessment year vis-à-vis the year approved in the APA, therefore, the same shall have persuasive value. Further, it is also observed that CBDT has principally approved the concept of overseas AES adopted as the tested party in th....
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....- for the subject year. The AO/TPO is directed to re-compute the AMP adjustment (with a mark up of 15%) after following the APA methodology. It is reiterated that the Hon'ble tribunals have endorsed the approach of extending APA methodology even for non APA years particularly where there are no change of facts of the case over the years (refer para 10.34). The AO has not brought out any specific facts in this case which are different from the APA roll over years. Therefore, the above decision is in line with the position as decided by Hon'ble Tribunals as discussed above. 9.38 In view of the above discussion, the ground of appeal is partly allowed." 18. Perusal of the above findings of the Ld. CIT(A) would show that the ....