TaxTMI 
TaxTMI 
2026 (8) TMI 1715
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....l in nature. 6. In Ground No.2 to 2.4, ld AR submitted that this issue was in regard to international transaction done by the assessee. It was the submission that the TPO had computed the Arm's length Price (ALP) of Corporate Guarantee at 4% following its earlier orders. It was the submission that the ld CIT(A) had upheld the addition as made by the Assessing Officer. It was fairly agreed by both the sides that the issue is now squarely covered by the decision of the Coordinate Bench of this Tribunal in assessee's own case for the assessment year 2007-08 in ITA No.68/Ran/2017 dated 12.6.2025, wherein, in paras 19 to 20, the Coordinate Bench has held as follows: "19. In reply ld CIT DR submitted that as per the citations submitted by the assessee itself the Hon'ble Bombay High Court decision in the cased of . Everest Kanto Cylinder Ltd. vs. DCIT, clearly shows corporate guarantee is at 0.5%. It was the submission that the corporate guarantee may be fixed at 0.5%. 20. We have considered the rival submissions. A perusal of the various case laws submitted by AR clearly shows that Hon'ble Bombay High Court in the case of M/s. Everest Kanto Cylinder Ltd. vs. DCIT. re....
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.... vehemently supported the order of the AO and ld CIT(A). 11. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that for the assessment year 2007-08, the Co-ordinate Bench has held that the interest rate is to be tagged at 9%. This being so, respectfully following the decision of the Co-ordinate Bench in assessee's own case for the assessment year 2007-08 (supra), the Assessing Officer is directed to restrict the addition by taking the interest rate at 9% for the impugned assessment year. This ground stands partly allowed. 12. In regard to Ground No.6, it was submitted by ld AR that this issue was in regard to adhoc disallowance out of general expenses in respect of foreign travel expenses. It was the submission that the Coordinate Bench of this Tribunal in assessee's case for the assessment year 2007-08 has considered the fact that the assessee itself has made disallowance and had made the addition under fringe benefit tax. It was the submission that consequently, the Coordinate Bench has deleted the addition in respect of adhoc disallowance out of foreign travel expenses. It was the prayer that the disallowance as made by the ....
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....een held as follows: "21 In Ground No. 6.& 7, it was submitted by ld AR these are taxation issue. It was the submission that the issue was in regard to claim of 80IA in respect of applicability of the electricity tariff. It was the submission that the issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of Jindal Steel and Power Ltd., reported in No.13771 of 2015 ( 157 taxmann.com 207 (Del), wherein, in para 30 and 31, the Honble Supreme Court has held as follows: "30. Thus on a careful consideration, we are of the view that the market value of the power supplied by the State Electricity Board to the industrial consumers should be construed to be the market value of electricity. It should not be compared with the rate of power sold to or supplied to the State Electricity Board since the rate of power to a supplier cannot be the market rate of power sold to a consumer in the open market. The State Electricity Board's rate when it supplies power to the consumers have to be taken as the market value for computing the deduction under Section 80IA of the Act. 31. That being the position, we hold that the Tribunal had rightly compu....
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....case of Subhash Kabini Power Corporation Ltd (2016) 69 taxmann.com 394 (Karnataka) has categorically held that the receipts on sale of carbon credit is to be treated as capital receipts as carbon credits cannot be qualified as goods. It was the submission that admittedly, the provisions of section 115BBG have been introduced by the Finance Act, 2017 w.e.f. assessment year 2018-19 and same is prospective in nature, wherein, the receipts from carbon credits have been treated as revenue receipts. It was the submission that the impugned assessment year is 2008-09 and said amendment would not come into play in this assessment year. 21. In reply, ld CIT DR submitted that the carbon credits is a revenue receipts insofar as it is generated from the business activity of the assessee and, therefore, same should be treated as revenue receipts. 22. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that Hon'ble Madras High Court as also Hon'ble Karnataka High Court has categorically held that the carbon credits cannot be treated as goods. It has also been held that the receipts on the sale of carbon credits are to be treated as capital rece....
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....ium). In the present year undor considerabon, the Appellant submits that. wegen m unas tuing in AY 2007-08 in the Appelant's own case, any adjustment, if at all warranted, should be restricted to 0.5% SI. No. Issue AD/TPO Order CIT[A) Order Contentions of Appellant Case Laws relied upon by the appellant Ground no. 2.4 rest on loan given to Usha Siam Sipe Incubles Public Limited The Ld. TPO followed its earlier year's stand that the interust rata charged by Siam Commercial Bank was not comparable as the On appeal, the (CIT[A) upheld the Ld. TPO's order and stated that the loan provided by Appellant was not secured (i) Principle followed for benchmarking under CUP Method CIT vs. Cotton Naturals (I) Pvt. Lic [TS-117-HC-2015(DEL)-TP), The Appellant used internal CUP method to benchmark interest rates for USSIL, Comparability analysis with regard to loan to (Delhi USSILI milion baht Olender was located in the same against any security and subordinated to bank loan. in addition to the Bank loan being secured by the assets of the Appellant, add bonal security in the form of infusion of funds obtained. Thus, an adjustment was required to be made for not: offeri....
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....nd before the CITTA) (Pg 266 of paperbook) The issue of disallowance of general expenses was decided against he appellant in AY's 1998-99, 2002-03, and 2003-04 by the Hon'ble Tribunal A similar issue also arose in AY 2007-08 [Ground No. 3]. le what we mustsee the armsllame suo matu disallowed Rs. 2 59 88 pendentessom phone gesendet clause 17/0), relating to amounts inadmissible under Section 40(a). cause 17(1), retsang ! aber espero doxa). This disallowance was significantly higher man the ad hoc 5% Howthe pasaki Banch in AY 2007-08 nTA No. BABancos ?! Hon'ble Ranchi Bench, [ITA 68/Ran/2017]. deleted the entire ad hoc disallowance made by the Ld. AD (Refer Para 7 of the order for AY 2007-08, at page 3 of the Legal Compendium). Decision of the un appellant's own case for AY 1998 99, 2002-03 & 2003-04. disallowance has been made by the appellant. Therefore, in light of In the current year under consideration, no such suo motu the Tribunal's rulings in AYs 1998-99, 2002-03, and 2003-04 in the appelant's own case, the appelant does not wish to press this ground. SI No. Issue AO/TPO Order CIT(A) Order Contentions of Appellant Case Laws relied upon b....
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....nt Case Laws relied upon by the appellant Disallowance of Foreign The ad-hoc CIT[A] upheld the order of the It is humbly submitted that this issue under consideration has 1. Appelant's Own Con un Travel Expenditure disallowance of 15% of the expenditure on the ground ravel was done to countries ant had no subsidiaries and the directors were accompanied by their wives (Pg 108 to 109 of Paperbook) AO on the ground that thatassessee could not substantiate the business expediency necessary evidence (Pg 292 of Paperbook) already been decided in favour of the appellant by the Hon'ble aresay beun coucou how we aregrown case for AY 2007- Jurisdictional Tribunal in the appellante puedencon TA 08 [Ground No. 5] in ITA No. 68/Ran/2017 dated 12th June 2025. 2007-08 in ITA 68Ran/2017 Calce 12th June 2025 (Refer Pg 1-13 of Legal compendium). ve Hicule Tribunal in its order (Refor Para 25 of the order for AY 2007-08, at page 13 of the Legal Compendium) held compendium mme that since the appeslami made of Fringe Benefit Tax (FBT) and offered 20% of such expenses to tax under FBT, the disallowance made by the AD was not sustainable and was accordingly deleted. 2. Relevant extract....
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....the Act byl adopting the actual landed cost of power charged by the Jharkhand State Electricity Board (JSEB) for supply of power to the appellant Decision of SC in case of nad Steel & Power Umnos mad with corrigerdum carga na 2024 (Page 225-228 of the Legal Compendium) Decision of Jharkhand High Court in the case of Grasm Industries Limited [T.A. No. 18 to 21 of 2021] amom (Page 229-234 of the Legal Compendium) SL No. Issue AOITPO Order CIT(A) Order Contentions of Appellant Case Laws relied upon by the Ground no.6 Disallowance OF Travel Expenditure ad-hoc CIT[A] upheld the order of the it is humbly submitted that this issue under consideration has 1. Appelant's own case for AY abalance of 5% of expenditure on the ground travel was done to countries where the appellant had subsidiaries and the directors were accompanied by their wives (Pg 108 to 109 of Paperbook) het could thatsassasce not substantiate nolexpedieney bu cuando necessary evidence (Pg 292 of Paperbook) mary been Tribunal in the appellant's own case for AV 2007- Jurisdictional 08 [Ground No. 5] in ITA No. 68/Ran/2017 dated 12th June 2025. order for AY 2007-08, at page 13 of the Legal Compendium) hold expe....
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....(Page 225-228 of the Legal in the case of Grasim Industries Limited ITA. No. 18 to 21 of 20211 (Page 229-234 of the Legal Compendium) SI. No. Issue AO/TPO Order CITIA) Order Contentions of Appellant Case Laws relied upon by the appellant Ground no. 8 reating the income from sale of carbon credits revenue receipts The AD Tressed the carbon credits es "goods' and contended that hat, in the absence of an explor receipts are not taxable. The AC further observed that the definition ndusive in nature, and therefore pry maosint would tal witten the specifically unless accordingly, the AD rejected the appelants conterbon that the espero carbon credits be treated as capital receipts. (Page 117 to 122 of Paperbook) The La. ClAl upheld the iforder of the AO on the premise contacterwhom were iable to be treated as "income"receipts within the meaning of sechion champsble ander spusser Bliv). The alternative plea poweredbysean of carbon credits be regarded as part of the profits eligible for deduction under section 80-la- was also rejected by the Ld. CIT[A] on the grounds that: Dy no such claim had been made by the appellant in its rotum of could not be mentesen regarded as profits and ....