ACIT, CIRCLE-14(2), NEW DELHI vs. KNOWLEDGE INFRASTRUCTURE SYSTEMS PVT. LTD., NEW DELHI

This appeal is filed by the revenue against the order of the ld CIT(A)-44, new Delhi dated 30.11.2017 for the Assessment Year 2013-14. The ld AO has raised the following grounds of appeal:- “(i) Whether in the facts and circumstances of the case, whether the order of Ld. CIT(A) is perverse in giving relief to the assessee by reducing the rate of Interest from L1BOR+400(4.96231%) to 2.11% for the transaction pertaining to „Interest on Loan to AE‟ by completely ignoring the direction of Hon‟ble High Court in the case of M/s Cotton Naturals (I) (P) Ltd. and various tribunal judgments? (ii) Whether in the facts and circumstances of the case, whether the order of Ld. CIT(A) is perverse in giving relief to the assessee by reducing the rate of Interest from LIBOR+400(4.96231%) to 2.1 for the transaction pertaining to „Interest on Loan to AE‟ by relying on the TPO‟s stand in previous AY, without appreciating the fact there is no res judicata in income tax proceedings and in the process neglected the judgement of various courts and tribunals? (iii) Whether in the facts and circumstances of the case, whether the order of Ld. CIT(A) is perverse, deleting the adjustment made by the TPO regarding the Corporate Guarantee, by allowing Corporate Guarantee fees at mere 0.25% instead of the 1.30% levied by the TPO, whereas if the Safe Harbour Rules laid down under Income Tax Rules were to be followed, the assessee should have had accept the fees at 2%? (iv) Whether in the facts and circumstances of the case, whether the order of Ld. C1T(A) is perverse deleting the adjustment made by the TPO regarding the Corporate Guarantee without appreciating the fact that there is no res judicata in income tax Page | 1