TaxTMI 
TaxTMI 
2023 (1) TMI 1537
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....the appellant for AY 2017-18 at INR 40,44,64,087 as against returned income of INR 12,36,48,010 as reported in the return of income filed by the appellant. PART I - TRANSFER PRICING ADJUSTMENTS Rejection of economic analysis: 2. erred in not accepting the economic analysis/position adopted by the appellant in accordance with provisions of the Act read with the Income-tax Rules, 1962 ("the Rules") and proceeding to re-determine the arm's length price ("ALP") thereof. Adjustment in respect of re-characterisation of preference shares of INR 27,96,34,539: 3. erred in making an adjustment under section 92CA(3) of the Act of INR 27,96,34,539 by re-characterising the investments made in preference share....
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.... 8. erred in levying interest under Section 234D of the Act amounting to INR 97,76,613/- Initiating penalty under section 271AA(1) and 270A of the Act: 9. erred in both on facts and circumstances of the case and in law, in proposing to initiate penalty proceedings under section 271AA(1) and 270A of the Act. 3. Briefly stated, the assessee is engaged in providing IT-enabled Business Process Outsourcing Services to its Associated Enterprises ('AEs') outside India. 4. Ground no.1 to 2, are general in nature, hence, does not require adjudication. 5. In grounds no. 3 to 5, the Appellant has challenged the action of transfer pricing officer of imputing interest of Rs.27,96,34,539/- by re-characterising the invest....
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....nuary 2019, in ITA no.1248/2016. In this context, he drew our attention to the decisions of the Tribunal and the Hon'ble Jurisdictional High Court. He submitted, the same view was reiterated by the Tribunal while deciding assessee's appeal for the assessment years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15. Thus, he submitted, the issue stands covered by the assessee by virtue of the aforesaid decisions of the Tribunal and the Hon'ble Jurisdictional High Court. 8. Shri Yogesh Kamat, learned Departmental Representative (DR) fairly submitted, in the preceding assessment years this issue has been decided in favour of the assessee by the Tribunal and the Hon'ble Jurisdictional High Court. 9. We have considered rival submis....
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....ee and the AE ?" 2. The respondent-assessee is a Company registered under the Companies Act. For the Assessment Year 2009-10, the assessee was subjected to transfer pricing regime. Question no.1 arises out of the action of the Revenue to tax notional interest in the hands of the assessee through transfer pricing. The facts are that, during the period relevant to the assessment year in question, the assessee had subscribed to redeemable preferential shares of its Associated Enterprises ("AE" for short) and redeemed some of its shares at par. The Transfer Pricing Officer ("TPO" for short) held that the preference shares were equivalent to interest free loans advanced by the assessee and accordingly charged the interest on notional ba....
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....no. 7348/Mum/2017, dated 06.02.2019, for A.Y. 2013-14; and iv) ITA no 125/Mum/2019, dated 30.04.2019, for AY 2014-15 11. Since the facts being identical, following the consistent view of the Tribunal and the Hon'ble Jurisdictional High Court, we hold that re-characterization of preferential shares as interest free loan is invalid. Accordingly, we delete the addition made on account of the said adjustment 12. In ground no. 6, the Appellant has challenged the disallowance made by learned AO under section 36(1)(va) of the Act of Rs. 11,81,538/- on account of delay in deposit of employees contribution towards provident fund. 13. Brief facts are, the Appellant, during the year has made certain delays in depositing Employee'....
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...., Hon'ble High Court and co-ordinate bench of Tribunal: i) CIT vs Ghatge Patil Transports Ltd (53 taxmann.com 141) (Bombay HC) ii) TML Business Services Limited earlier known as Concorde Motors (India) Limited) (ITA No 931/M/2021) dated 29 December 2021. iii) Ramesh Narayan Shetty (ITA 2008/M/2021 and ITA 79 & 80/M/2022) dated 12 May 2022 iv) Alom Extrusions Ltd [2009] 319 ITR 306 (SC) v) CIT vs Vinay Cement Ltd [213 CTR 268 (SC), 16. The learned Departmental Representative relied upon the observations of the Assessing Officer and DRP. 17. We have considered rival submissions and perused material on record. However, recently, the Hon'ble Supreme Court in the case of Checkmate Services Pvt L....