DCIT CIRCLE 1(1), NEW DELHI vs. ACME TELE POWER LTD. (NOW KNOWN AS ACME CLEANTECH SOLUTION LTD.), NEW DELHI

ITA 1074/DEL/2023Status: DisposedITAT Delhi20 November 2025AY 2010-11Bench: SHRI SUDHIR PAREEK (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)18 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that interest on loans advanced to AEs, repayable in USD, should be benchmarked using the LIBOR rate plus a margin, not the domestic lending rate. It also remanded the issue of investment verification to the AO and allowed the disallowance of warranty provisions as an ascertained liability.

What were the facts?

The assessee company, engaged in manufacturing and servicing telecom infrastructure, advanced loans to its Associated Enterprises (AEs). The Transfer Pricing Officer (TPO) proposed adjustments to the arm's length price (ALP) of these international transactions, specifically on loans and outstanding receivables. The Assessing Officer (AO) made further additions under Section 14A and disallowed warranty provisions.

What were the issues?

Whether the correct ALP for international transactions involving loans to AEs is determined by domestic lending rates or LIBOR, and whether provisions for warranty are allowable.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 14A,Section 115JB

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI “I” BENCH: NEW DELHI

Before: SHRI SUDHIR PAREEK & SHRI MANISH AGARWAL

For Appellant: Dr. Rakesh Gupta, Adv, Shri Somil Agarwal, Adv. (Virtual), Shri Sakshamm Agarwal, AR &, Shri Deepesh Garg, Adv
For Respondent: Shri Dharm Veer Singh, CIT DR
Hearing: 21.08.2025Pronounced: 20.11.2025

PER MANISH AGARWAL, AM : In the captioned appeals, one appeal is filed by assessee against the assessment o

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 92CA

All 3,978 judgments and leading authorities on Section 92CA →

Recent GST High Court judgments

Search GST case law →