2026 (5) TMI 43

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....ew Delhi (hereinafter referred to as "Ld. AO"), u/s 143(3) r.w.s. 144C of the Act for Assessment Year 2012-13. 2. Brief facts of the case are that, the company filed return of income of Rs. 26,12,86,956/- on 30.11.2012. The case was selected for scrutiny through CASS. For examining the details in complete manner with specific emphasis on Depreciation claimed at higher rates/higher additional Depreciation in the return of income. The notice u/s 143(2) of the Act dated 08.08.2013 was issued. Questionnaire along with notice u/s 142(1) dated 12.09.2014 was issued. Sh. S. K. Bajaj & Sh. S. K. Murgai, CA/ARs for the assessee, filed details and produced books of account. 2.1 As per Form 3CEB filed along with the return of income, company had....

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....essee filed appeal before the ld. CIT(A) which was partly allowed vide order dated 16.02.2023. Ground No. 1, regarding TPO adjustment of Rs. 5,83,947/- by computing the interest of outstandings of exports sales made to associated enterprises when no interest has been charged by the appellant company even on receivables on sales from non-associates was allowed. Ground Nos. 2a and 2c regarding the transfer pricing adjustment in respect of interest of interest of Rs. 3,98,521/- on loan given by the company to its AE, Bry Air Pro-Kon Sagl was allowed. Ground No. 2b against the addition of Rs. 53,33,982/- in respect of transfer pricing adjustment of interest on loan A+H Germany was partly allowed. The interest was restricted @ 6% which was charg....

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....appeal. 5. Ld. Authorized Representative for the appellant/assessee submitted that, Ld. CIT(A) erred in sustaining adjustment on interest @ 6% u/s 92CA(3) of the Act on loan given to Ahlberg + Hennrich GmbH, Germany (erstwhile) wholly owned investment and loan granted to Ahlberg + Hennrich GmbH, Germany. The appellants (Germany) subsidiaries which was incurred persistent loss and under liquidation. The ld. CIT(A) ignored liquidation order dated 18.01.2012 passed by Hamburg district court page 115 of PB. The additional evidence consists of copy of independent Auditor's Report for submission with the Reserve Bank of India page 1-2 of PB, copy of Letter dated 08/11/2023 filed before Chief General Manager of CEFA Division page 3-10 of PB, Fo....

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....are of A+H Germany amounting to Rs. 20,142,000 and loan granted along with accrued interest thereon amounting to Rs. 44,920,077 as at 31 March 2013, has been fully written off in the books of accounts of the Company and there has been no recovery by the Company till 31 March 2021 pursuant to sale of assets of the subsidiary upon liquidation. (b) Copy of letter dated 08.11.2023 filed before the Chief General Manager, CEFA Division Foreign Exchange Department is at page 3-10 of PB. (c) Copy of order dated 28.05.2024 of Reserve Bank of India page 11-14 mentions granting of compounding application for contravention regarding interest on loan to German subsidiaries. 7.4 In the interest of justice, the additional evidence con....