THE TATA POWER CO. LTD,MUMBAI vs. ADDL CIT RG 2(3), MUMBAI

ITA 753/MUM/2013Status: DisposedITAT Mumbai12 January 2024AY 2008-09Bench: SHRI VIKAS AWASTHY (Judicial Member), MS. PADMAVATHY.S (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal allowed the appeal on the disallowance under Section 14A, finding merit in the assessee's methodology which was accepted in prior years. Regarding transfer pricing adjustments, the Tribunal deleted additions concerning interest paid on technical know-how and foreign currency loans, accepting the assessee's effective rate of interest and LIBOR application for loans advanced from India.

What were the facts?

The assessee, engaged in electricity generation, transmission, and distribution, entered into international transactions involving loans to an associated enterprise (AE) and provision of corporate guarantees. The Transfer Pricing Officer (TPO) made significant adjustments to these transactions. The assessee also claimed expenditure on shelved projects and made a suo-moto disallowance under Section 14A.

What were the issues?

The key issues were the correctness of the disallowance made under Section 14A and the validity of transfer pricing adjustments made by the TPO on international transactions, particularly concerning interest rates on loans to associated enterprises.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(3),Section 144C(13),Section 133(6)

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Income Tax Appellate Tribunal, MUMBAI BENCH “H”, MUMBAI

Before: SHRI VIKAS AWASTHY& MS. PADMAVATHY.S

Hearing: 20/10/2023Pronounced: 12/01/2024

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the assessment order dated 30/11/2012 passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961[in short ‘the Act’], for the Assessment Year 2008-09. 2. The assessee is engaged in generation, transmission and distribution of electricity. During the period relevant to assessment year under appeal, the

The order continues below.

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