TaxTMI 
TaxTMI 
2025 (8) TMI 1103
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....nvenience, we are disposing of these appeals by way of this consolidated order. Since, the facts and issues are common for both the years, we deciding these appeals together. 2. We are discussing the facts of AY 2017-18, taking this as lead year. Brief facts of the case as coming out from the orders of authorities below are that the assessee is a provider of telecommunication equipment, comprehensive passive infrastructure solutions including enclosures, cooling and power solutions to wireless telecom players and related services to mobile operators in India as well as overseas. During the year under consideration, the assessee has entered into international transactions with its Associated Enterprises (AE). Observing this fact the AO ma....
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....essee argued following points: (a) that assessee has not charged any interest from the Non-Associated Enterprises. (b) Similar disallowance were deleted by the Ld. CIT(A) in Assessment Year 2012-13 and 2013-14 and Revenue has not filed any appeal against that order and, therefore, no addition can be made on the basis of the principle of consistency. 6. Ld. Counsel for the assessee has also drawn the attention of the bench towards the application for admission of additional evidence filed by the assessee before the DRP on 29th November, 2021 and contended that the DRP has erred in not considering the additional evidence filed by the assessee with respect to the addition of notional interest on delayed receivables. At last, Counsel for the....
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....of the Ld. Counsel for the assessee is that the reference to Financial Year 2015-16 is made only for computation purposes and the assessee has made these provisions on scientific basis. It is the contention of the Ld. Counsel for the assessee that assessee was creating a provision for providing warranty of two years and for calculating rate the assessee taking the rate of one day and then multiplying with the remaining days falling in the next financial year for computing the figure of amount (AR has also drawn the attention of the Bench towards relevant pages of Paper Book, wherein per day rate working is exhibited). Ld. Counsel of the assessee further contended that the assessee reversing the unutilized provisions in next year and offerin....
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....eed the amount of exempt income. 14. Ld. DR relied upon the orders of authorities below. 15. We have heard the rival submissions and perused the materials available on record. We find force in the argument of the Ld Counsel for the assessee that in any case the disallowance of 14A cannot exceed the quantum of exempt income accrued to assessee, this proposition of law has been laid down by the Hon'ble Jurisdictional High Court in the case of Joint Stock Investment reported in 59 taxman.com 295(Del),. Respectfully following the verdict of the Hon'ble Jurisdictional High Court, we are hereby direct the AO to sustain the disallowance to the tune of Rs. 29,447/- for Assessment Year 2017-18 and Rs. 40,243/- for Assessment Year 2018-19. 1....