CIT v. Cotton Naturals (I) (P.) Ltd.

55 Taxmann.com 523High Court2015#291 most cited

What is CIT v. Cotton Naturals (I) (P.) Ltd. authority for?

The interest rate for benchmarking foreign currency loans advanced to Associated Enterprises should be the market-determined rate applicable to the currency of the loan, such as LIBOR for US Dollar loans, rather than a domestic lending rate like the Indian PLR.

273

judgments rely on this decision, according to BharatTax’s citation analysis of 369,743 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Cotton Naturals (I) (P.) Ltd. · 55 Taxmann.com 523 · 231 Taxmann 401 · section 92B · section 92CA(3) · arm's length interest · foreign currency loan · outstanding receivables · LIBOR · PLR · benchmarking interest · associated enterprise

Also reported as

231 Taxmann 401

Sections most often in play

Section 143(3)Section 92BSection 144C(13)Section 144BSection 144C(5)Section 234BSection 92CA(3)Section 234C
Read the full judgment

Issues it is cited on

interest on outstanding receivablessection 92b(1)safe harbour rulessafe harboursection 92bsection 72asection 92(1)preliminary expensescup methodcorporate guaranteeworking capital adjustmenttransfer pricing order

Judgments citing CIT v. Cotton Naturals (I) (P.) Ltd.

Laqshya Media Limited, Mumbai vs. Deputy Commissioner of Income Tax-10(2)(1), Mumbai

In the result this ground of appeal is allowed for statistical purposes

ITA 7310/MUM/2018[2014-15]Status: DisposedITAT Mumbai17 Jul 2020AY 2014-15

Bench: Shri Pawan Singh & Shri M. Balaganesh(Virtual Hearing In Vc No. –Ii) M/S. Laqshya Media Ltd. D C I T - 10(2)(1) Laqshya House Room No. 509/216A Next To Rameshwar Temple, Vs. Aayakar Bhavan, M.K. Road Saraswti Baug, Society Road, Mumbai 400020 Jogeshwari (E), Mumbai 400060 Pan – Aaacl5004C Appellant Respondent Appellant By: Shri Rajan Vora-Ar Respondent By: Shri Anand Mohancit-Dr Date Of Hearing: 08.07.2020 Date Of Pronouncement: 17.07.2020 O R D E R Per Pawan Singhthis Appeal Filed By The Assessee Is Directed Against The Assessment Order Passed By The Assessing Officer Under Section 143(3) R.W.S. 144C(1) Of The Income Tax Act, 1961 (Hereinafter "The Act") Dated 29Th October, 2018, Passed In Pursuance Of The Directions Of Dispute Resolution Penal (Drp) Dated 28Th August, 2018 For A.Y. 2014-15. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “On The Facts & In The Circumstances Of The Case & In Law, The Learned Ao/ Learned Deputy Commissioner Of Income-Tax, Transfer Pricing - 3(1)(1)(Hereinafter Referred To As Tpo')/ Hon'Ble Drp Has: General Ground 1. Erred In Assessing The Total Income At 5,67,38,117As Against Returned Loss Of Rs.8,55,13,089 Computed By The Appellant; Part B -Transfer Pricing Ground: 2. Adjustment Of Rs.20.58.028/- Pertaining To Providing Of Corporate Guarantee (Cg) To Associated Enterprise (Ae)

For Appellant: Shri Rajan Vora-ARFor Respondent: Shri Anand MohanCIT-DR
Section 143(3)Section 36(1)(iii)Section 92BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL "K" Bench, Mumbai Before Shri Pawan Singh, Judicial Member and Shri M. Balaganesh, Accountant Member (Virtual hearing in VC No. –II) M/s. Laqshya Media Ltd. D C I T - 10(2)(1) Laqshya House Room No. 509/216A Next to Rameshwar Temple, Vs. Aayakar Bhavan, M.K. Road Saraswti Baug, Society Road, Mumbai 400020 Jogeshwari (E), Mumbai 400060 PAN – AAACL5004C Appellant Respondent Appellant by: Shri Rajan Vora-AR Respondent by: Shri Anand MohanCIT-DR Date of Hearing: 08.07.2020 Date of Pronouncement: 17.07.2020 O R D E R PER PAWAN SINGH, JUDICIAL MEMBER This appeal filed by the assess…

Techbooks International Pvt. Ltd., Noida vs. ACIT, Noida

In the result appeal of the assessee is dismissed

ITA 6102/DEL/2016[2012-13]Status: DisposedITAT Delhi06 Jul 2020AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Prashant Maharishitechbooks International Pvt. Ltd, Vs. Acit, Plot No. 37, Block-A, Circle-3, Sector-60, Gautam Budh Nagar, Noida Noida Pan: Aabct3774A (Appellant) (Respondent)

For Appellant: Shri Manoneet Dalal, AdvFor Respondent: Shri Mritunjoy Baranwal, Sr. DR
Section 234BSection 271Section 92Section 92B(1)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2”: NEW DELHI BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Techbooks International Pvt. Ltd, Vs. ACIT, Plot No. 37, Block-A, Circle-3, Sector-60, Gautam Budh Nagar, Noida Noida PAN: AABCT3774A (Appellant) (Respondent) Assessee by : Shri Manoneet Dalal, Adv Shri Yishu Goel, AR Revenue by: Shri Mritunjoy Baranwal, Sr. DR Date of Hearing 12/03/2020 Date of pronouncement 06/07/2020 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the assessee against the order of the ld AO dated 26.10.2016 for the Assessm…

Lotus Labs Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-4(1)(1), Bangalore

In the result appeal filed by assessee stands partly allowed

ITA 2207/BANG/2017[2013-14]Status: DisposedITAT Bangalore13 May 2020AY 2013-14

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.2207/Bang/2017 Assessment Year : 2013 – 14

For Appellant: Shri. Chavli Narayan, CAFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 143Section 143(3)Section 144CSection 80

…an international transaction and ALP of such international transaction has to be determined by Ld.TPO. In so far as charging of rate of interest is concerned, he relied on decision of the Hon’ble Delhi High Court in CIT vs. Cotton Naturals (I) Pvt. Ltd (2015) 276 CTR 445 (Del) holding that Page 10 of 16 IT(TP)A No.2207/Bang/2017 A. Y: 2013 – 14 currency in which such amount is to be re-paid, determines rate of interest. He, therefore, concluded by summing up that interest on outstanding trade receivables is an international transaction and its ALP has been correctly determined. 3.5.7. We have perused the submiss…

M/S. Metricstream Infotech (India) Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bangalore

In the result appeal filed by assessee stands allowed as indicated hereinabove

ITA 2347/BANG/2019[2015-16]Status: DisposedITAT Bangalore24 Apr 2020AY 2015-16

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.2347/Bang/2019 Assessment Year : 2015 – 16

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 133(6)Section 143(3)

…an international transaction and ALP of such international transaction has to be determined by Ld.TPO. In so far as charging of rate of interest is concerned, he relied on decision of the Hon’ble Delhi High Court in CIT vs. Cotton Naturals (I) Pvt. Ltd (2015) 276 CTR 445 (Del) holding that currency in which such amount is to be re-paid, determines rate of interest. He, therefore, concluded by summing up that interest on Page 32 of 36 IT(TP)A No.2347/Bang/2019 A. Y : 2015 – 16 outstanding trade receivables is an international transaction and its ALP has been correctly determined. 17.7. We have perused the submissi…

Positive Packaging P.Ltd, Mumbai vs. DCIT Cir 3(2), Mumbai

In the result this ground of appeal is allowed for statistical purpose

ITA 2483/MUM/2015[2009-10]Status: DisposedITAT Mumbai22 Apr 2020AY 2009-10

Bench: Shri Shamim Yahya & Shri Pawan Singhm/S Positive Packaging Industries Vs Dcit Circle 3(2), Room No. Ltd, 12A-06, B-Wing, 608, Aayakar Bhawan, Parinee Crescenzo, M.K.Road, C-38/39, G-Block, Mumbai-20 Bandra Kurla Complex, Bandra (E), Mumbai-400 051 Pan : Aaacp2836Q Appellant Respondednt

Section 201Section 43(6)(c)Section 43A

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI SHAMIM YAHYA ACCOUNTANT MEMBER & SHRI PAWAN SINGH JUDICIAL MEMBER M/s Positive Packaging Industries Vs DCIT Circle 3(2), Room No. Ltd, 12A-06, B-Wing, 608, Aayakar Bhawan, Parinee Crescenzo, M.K.Road, C-38/39, G-Block, Mumbai-20 Bandra Kurla Complex, Bandra (E), Mumbai-400 051 PAN : AAACP2836Q APPELLANT RESPONDEDNT Appellant by Shri Bhaumik Goda (AR) Respondent by Shri Vodal Raj Singh (CIT-DR) Date of hearing 04-02-2020 Date of pronouncement 22-04-2020 O R D E R Per Pawan Singh, Judicial Member: 1. This appeal by assessee is directed a…

Wockhardt Ltd, Mumbai vs. Addl CIT RG 10(1), Mumbai

In the result this ground of appeal is partly allowed

ITA 4866/MUM/2013[2008-09]Status: DisposedITAT Mumbai09 Mar 2020AY 2008-09

Bench: Shri Pramod Kumar & Shri Pawan Singhm/S Wockhardt Ltd, Vs Additional Commissioner Of Wockhardt Towers, Bandra Income Tax Range -10(1), Kurla Complex Bandra(E), Aayakar Bhawan, Mumbai-400051 M.K. Road, Mumbai -20 Pan:Aaacw2472M Appellant Respondednt

Section 14ASection 35Section 35fSection 92BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER M/s Wockhardt Ltd, Vs Additional Commissioner of Wockhardt Towers, Bandra income tax Range -10(1), Kurla Complex Bandra(E), Aayakar Bhawan, Mumbai-400051 M.K. Road, Mumbai -20 PAN:AAACW2472M APPELLANT RESPONDEDNT ITA No.5378/Mum/2013(Assessment year: 2008-09 Additional Commissioner Vs M/s Wockhardt Ltd, of income tax, Wockhardt Towers, Bandra Range -10(1), Kurla Complex Bandra(E), Aayakar Bhawan, Mumbai-400051 M.K. Road, PAN:AAACW2472M Mumbai -20 APPELLANT RESPONDEDNT…

Essar Shipping Limited, Mumbai vs. ACIT-5(1)(2), Mumbai

In the result, ground No.10 is allowed for statistical purposes

ITA 7371/MUM/2017[2013-14]Status: DisposedITAT Mumbai06 Mar 2020AY 2013-14

Bench: Shri R.C.Sharma, Am & Shri Vikas Awasthy, Jm Essar Shipping Ltd., Vs. A.C.I.T.-5(1)(2), 11, K.K. Marg, Mahalaxmi, Mumbai. Mumbai-400034. Pan/Gir No.Aacce 3707 D (Appellant) .. (Respondent)

Section 115VSection 143(3)Section 144C(13)Section 144C(5)

…t LIBOR, since the transaction is in the foreign currency, our view is supported by the following decisions: 16 Essar Shiping Ltd. Vs ACIT i) CIT v. Aurionpro Solutions Ltd (ITA No: 1869 of 2014) (Bombay High Court) ii) Cotton Naturals (I) Pvt. Ltd. v DCIT [276 CTR 445 (Del)] iii) Hinduja Global Solutions Ltd v Addl.CIT [145 lTD 361 (Mum)] iv) Siva Industries & Holding Ltd. vs. CIT [145 TTJ 497 (Chen)] v) 3F Industries Ltd. Jt. Cit [63 SOT 314 (Visak)] vi) M/s. Everest Kanto Cylinder Ltd. v. ACIT being ITA No.7073/Mum/2012 for 2008-09 dated 25.09.2014 21. Respectfully following the proposition laid down in…

Amol Dicalite Limited, Ahmedabad vs. The DCIT, Circle-1(1)(1), Ahmedabad

In the result the appeal of the assessee is partly allowed

ITA 991/AHD/2018[2009-10]Status: DisposedITAT Ahmedabad02 Mar 2020AY 2009-10

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 991/Ahd/2018 "नधा"रण वष"/Asstt. Year: 2009-2010 Amol Dicalite Limited, D.C.I.T, 301, Akshay, 53, Vs. Cirle-1(1)(1) Shrimali Society, Ahmedabad. Navrangpura, Ahmedabad-380009. Pan: Aabca2807K

For Appellant: Shri S.N. Soparkar, A.RFor Respondent: Shri Deelip Kumar, Sr.D.R
Section 36(1)(iii)Section 92

…आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A’’ BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 991/AHD/2018 "नधा"रण वष"/Asstt. Year: 2009-2010 Amol Dicalite Limited, D.C.I.T, 301, Akshay, 53, Vs. Cirle-1(1)(1) Shrimali Society, Ahmedabad. Navrangpura, Ahmedabad-380009. PAN: AABCA2807K (Applicant) (Respondent) Assessee by : Shri S.N. Soparkar, A.R Revenue by : Shri Deelip Kumar, Sr.D.R सुनवाई क" तार"ख/Date of Hearing : 12/12/2019 घोषणा क" तार"ख /Date of Pronouncement: 03/03/2020 आदेश/O R D E R PER WASEEM…

Ak Kearney Ltd.- India Branch Office, Gurgaon vs. ADIT, Circle- 1(1), International Taxation, New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 7723/DEL/2017[2010-11]Status: DisposedITAT Delhi25 Feb 2020AY 2010-11

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mehboob Ali, Sr. DR
Section 115J

…w that any expenditure incurred by him for the purpose of business carried on by him has actually resulted in profit or income either in the same year or in the subsequent years. 15. The Hon'ble High Court of Delhi in the case of Cotton Naturals India [P] Ltd 276 CTR 445 at para 17 of its order has held that “Chapter X and Transfer Pricing rules do not permit the Revenue authorities to step into the shoes of the assessee and decide whether or not a transaction should have been entered. It is for the assessee to take commercial decisions and decide how to conduct and carry on its business.” 16. It is incorrect to…

At Kearney Ltd.- India Branch Office, Gurgaon vs. ADIT, Circle- 1(1), International Taxation, New Delhi

In the result, the appeal filed by the assessee is partly allowed

ITA 7722/DEL/2017[2009-10]Status: DisposedITAT Delhi25 Feb 2020AY 2009-10

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mehboob Ali, Sr. DR
Section 115J

…w that any expenditure incurred by him for the purpose of business carried on by him has actually resulted in profit or income either in the same year or in the subsequent years. 15. The Hon'ble High Court of Delhi in the case of Cotton Naturals India [P] Ltd 276 CTR 445 at para 17 of its order has held that “Chapter X and Transfer Pricing rules do not permit the Revenue authorities to step into the shoes of the assessee and decide whether or not a transaction should have been entered. It is for the assessee to take commercial decisions and decide how to conduct and carry on its business.” 16. It is incorrect to…

DCIT, Bangalore vs. M/S Logica Pvt. Ltd., Bangalore

In the result appeal and cross objection filed by assessee stands allowed as indicated hereinabove

ITA 505/BANG/2016[2011-12]Status: DisposedITAT Bangalore30 Jan 2020AY 2011-12

Bench: Shri B.R.Baskaran, Am & Smt.Beena Pillai, Jm

For Appellant: Sri.T.Suryanarayana, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143Section 144C

…and ALP of such CO No.146/B/2016 A.Y:2011-12 international transaction has to be determined by Ld.TPO. In so far as charging of rate of interest is concerned, he relied on decision of the Hon’ble Delhi High Court in CIT vs. Cotton Naturals (I) Pvt. Ltd (2015) 276 CTR 445 (Del) holding that currency in which such amount is to be re-paid, determines rate of interest. He, therefore, concluded by summing up that interest on outstanding trade receivables is an international transaction and its ALP has been correctly determined. 3.5.7. We have perused the submissions advanced by both the sides in the light of the recor…

Russell Credit Limited, Kolkata vs. Addl. CIT, Range - 8, Kolkata

ITA 33/KOL/2018[2010-11]Status: DisposedITAT Kolkata17 Jan 2020AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)

…आयकर अपील"य अधीकरण, "यायपीठ – “"स” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri S.S.Godara, Judicial Member and Dr. A.L. Saini, Accountant Member ITA No.33/Kol/2018 & 1090/Kol/2017 Assessment Years : 2010-11 & 2011-12 Russell Credit Ltd., V/s. DCIT, Cricle-8/Addl.CIT 37, J.L. Nhru Road, Range-8,Aayakar Kolkata-700 071 Bhawan, P-7, [PAN No.AABCR 3494 H] Chowringhee Square, Kolkakta-700 069 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri J.P. Khaitan, Senior Advocate & आवेदक क" ओर से/By Assessee Shri Bikash Chandra, AR Shri Sanjay Paul, Addl. CIT-DR राज व क" ओर से/By Revenue 04-1…

Russell Credit Limited, Kolkata vs. DCIT, Circle-8, Kolkata

ITA 1090/KOL/2017[2011-12]Status: DisposedITAT Kolkata17 Jan 2020AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)

…आयकर अपील"य अधीकरण, "यायपीठ – “"स” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “C” KOLKATA Before Shri S.S.Godara, Judicial Member and Dr. A.L. Saini, Accountant Member ITA No.33/Kol/2018 & 1090/Kol/2017 Assessment Years : 2010-11 & 2011-12 Russell Credit Ltd., V/s. DCIT, Cricle-8/Addl.CIT 37, J.L. Nhru Road, Range-8,Aayakar Kolkata-700 071 Bhawan, P-7, [PAN No.AABCR 3494 H] Chowringhee Square, Kolkakta-700 069 .. अपीलाथ" /Appellant ""यथ"/Respondent Shri J.P. Khaitan, Senior Advocate & आवेदक क" ओर से/By Assessee Shri Bikash Chandra, AR Shri Sanjay Paul, Addl. CIT-DR राज व क" ओर से/By Revenue 04-1…

Bombay Rayon Holdings Limited, Mumbai vs. ITO-9(2)(2), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 5986/MUM/2018[2009-10]Status: DisposedITAT Mumbai06 Jan 2020AY 2009-10

Bench: Shri Shamim Yahya & Shri Pawan Singh

For Appellant: Shri. Madhur Agrawal, Shri Ajit KumarFor Respondent: Shri. Anand Mohan
Section 131Section 133Section 143(3)Section 144CSection 144C(13)Section 148Section 92(1)Section 92C(1)

…en a decision on merits of the issue and had simply rejected the revenues appeal on the ground, that the revenue has not contested similar relief given by the ITAT in another case. DRP noted that honourable High Court in the case of CIT versus Cotton Naturals 55 Taxmann.com 523 has specifically adjudicated that the arm‟s-length interest rate for loans advanced to foreign subsidiary by Indian company should be computed based on market determine interest rate applicable to the currency in which loan has to be repaid. Hence in this background and considering the absence of loan agreement and documentation and the fa…

M/S Jindal Dyechem Industries Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, ITA No.3253/Del/2011 filed by the Revenue is dismissed and ITA No

ITA 2242/DEL/2011[2005-06]Status: DisposedITAT Delhi13 Dec 2019AY 2005-06
For Appellant: Shri Salil Aggarwal, Advocate &
Section 69ASection 92Section 92C

…, submitted that as to whether the interest free advance given to AE is an international transaction or not has been decided against the assessee by the decision of the Hon’ble Delhi High Court in the cased of CIT vs. Cotton Naturals (I) (P) Ltd., reported in 276 CTR 445. However, so far as the addition is concerned, the ld. Counsel reiterated the same arguments as made before the CIT(A). Referring to page 282 of the paper book, the ld. Counsel for the assessee drew the attention of the Bench to the letter issued by the AO on 1st August, 2008 asking the assessee to explain as to why the income for the assessment…

DCIT, New Delhi vs. M/S Jindal Dyechem Industries Pvt. Ltd., New Delhi

In the result, ITA No.3253/Del/2011 filed by the Revenue is dismissed and ITA No

ITA 3253/DEL/2011[2005-06]Status: DisposedITAT Delhi13 Dec 2019AY 2005-06
For Appellant: Shri Salil Aggarwal, Advocate &
Section 69ASection 92Section 92C

…, submitted that as to whether the interest free advance given to AE is an international transaction or not has been decided against the assessee by the decision of the Hon’ble Delhi High Court in the cased of CIT vs. Cotton Naturals (I) (P) Ltd., reported in 276 CTR 445. However, so far as the addition is concerned, the ld. Counsel reiterated the same arguments as made before the CIT(A). Referring to page 282 of the paper book, the ld. Counsel for the assessee drew the attention of the Bench to the letter issued by the AO on 1st August, 2008 asking the assessee to explain as to why the income for the assessment…

Aithent Technologies Pvt. Ltd., New Delhi vs. ACIT, New Delhi

Accordingly, direct the ld. TPO to recompute the notional interest at US LIBOR plus 170 basis points, Grounds of appeal are, accordingly, allowed in part

ITA 6076/DEL/2016[2004-05]Status: DisposedITAT Delhi06 Dec 2019AY 2004-05

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Atul Ninawat, CAFor Respondent: Shri Sanjay I. Bara, CIT DR
Section 143Section 144CSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘I-1’ : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.6076/Del./2016 (Assessment Year : 2004-05) M/s. Aithent Technologies Pvt. Ltd., vs. ACIT, Circle 2 (1), A – 16/9, Vasant Vihar, New Delhi. New Delhi – 110 057. (PAN : AAACS2319H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Atul Ninawat, CA REVENUE BY : Shri Sanjay I. Bara, CIT DR Date of Hearing : 04.11.2019 Date of Order : 06.12.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER This is second round of litigation as in the first round, the case was set aside…

DCIT Cen Cir 8(3), Mumbai vs. Jsw Energy Ltd, Mumbai

The appeal stands partly allowed in terms of our above order

ITA 2452/MUM/2017[2011-12]Status: DisposedITAT Mumbai07 Nov 2019AY 2011-12

Bench: Hon’Ble Shri Pawan Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: S/Shri Rishabh Shah & Rakesh Joshi- Ld. ARsFor Respondent: Shri Akhtar H.Ansari- Ld.DR
Section 115JSection 14ASection 92C

…ing LIBOR rates as the base rates and ruled out the application of Corporate Bond Rate, SBI PLR Rate or Cost of Borrowing rate etc. Reliance was placed, inter-alia, on the decision of Hon’ble Delhi High Court rendered in CIT V/s Cotton Naturals (I) Pvt. Ltd. [55 Taxmann.com 523] to support the submissions that LIBOR would be appropriate benchmarking rate on such outbound loan transactions. The list of other decisions which has also affirmed the said view, as relied upon by assessee during appellate proceedings, has also been tabulated on page nos. 18-19 of the appellate order. Concurring with assessee’s submissio…

DCIT, Circle - 10(1), Kolkata vs. M/S. A.A. Infraproperties Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 55/KOL/2018[2013-14]Status: DisposedITAT Kolkata04 Oct 2019AY 2013-14
For Appellant: Dr. P. K. Srihari, CIT(DR)For Respondent: Shri Ravi Tulsiyan, FCA
Section 144CSection 40A(2)(b)Section 92C

…onsistently held that if the loan transactions are denominated in a foreign currency then international rate of interest i.e. LIBOR plus rate may be adopted as an appropriate benchmark: a. The Delhi High Court in case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [276 CTR 475] b. Chennai Bench of Tribunal in case of Siva Industries & Holdings Ltd. Vs. ACIT [145 TTJ(Chennai) 497] c. The Mumbai Tribunal in case of Tata Autocomp System Ltd. Vs. ACIT [149 TTJ 233]. The said decision has been affirmed by the Hon'ble Bombay High Court in case of CIT Vs.Tata Autocomp System Ltd. (374 ITR 516) 5. However, for the case at hand…

DCIT 12(2)(1), Mumbai vs. Firstsource Solutions Ltd., Mumbai

In the result, the appeal of the revenue is dismissed and appeal of the assessee is allowed

ITA 4759/MUM/2016[2010-11]Status: DisposedITAT Mumbai04 Oct 2019AY 2010-11

Bench: Shri M. Balaganesh, Am & Shri Ravish Sood, Jm Dy. Commissioner Of Vs. M/S. Firstsource Solutions Income Tax Limited 5Th Floor, Paradigm B 12(2)(1), Room No.223, 2Nd Floor, Aayakar Bhavan Mindspace, Link Road Mk Road, Malad (W) Mumbai – 400 020 Mumbai – 400 064 Pan/Gir No.Aaaci8904N (Appellant) .. (Respondent) M/S. Firstsource Vs. Dy. Commissioner Of Income Solutions Limited Tax 5Th Floor, Paradigm B 12(2)(1), Room No.223, 2Nd Floor, Aayakar Bhavan Mindspace, Link Road Malad (W) Mk Road, Mumbai – 400 064 Mumbai – 400 020 Pan/Gir No.Aaaci8904N (Appellant) .. (Respondent)

Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “K”, BENCH MUMBAI BEFORE SHRI M. BALAGANESH, AM & SHRI RAVISH SOOD, JM Dy. Commissioner of Vs. M/s. Firstsource Solutions Income Tax Limited 5th Floor, Paradigm B 12(2)(1), Room No.223, 2nd Floor, Aayakar Bhavan Mindspace, Link Road MK Road, Malad (W) Mumbai – 400 020 Mumbai – 400 064 PAN/GIR No.AAACI8904N (Appellant) .. (Respondent) M/s. Firstsource Vs. Dy. Commissioner of Income Solutions Limited Tax 5th Floor, Paradigm B 12(2)(1), Room No.223, 2nd Floor, Aayakar Bhavan Mindspace, Link Road Malad (W) MK Road, Mumbai – 400 064 Mumbai – 400 020 PAN/GIR No.AAACI8904N (Appella…