M/s Jindal Pipes Ltd. vs. Addl. CIT

Parties Involved

Facts Summary

The assessee, M/s Jindal Pipes Ltd., filed a return of income declaring income at Rs.22,78,72,460/- on 23/02/2008. The case was selected for scrutiny, and the assessee submitted details in support of the return. The Department of Revenue issued a draft assessment order proposing additions, which the assessee objected to. The assessment order was passed by Addl. CIT, Range-4, New Delhi on 28/01/2011. The assessee appealed to the Commissioner of Income-tax (Appeals) [CIT(A)], which was partly allowed on 24/02/2012. Both the Department of Revenue and the assessee appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Deletion of addition of Rs.42,16,543/- made by the Assessing Officer (AO) on the basis of order of the Transfer Pricing Officer (TPO) on account of difference in interest charged on loan.
• 2. Deletion of addition of Rs.3,11,70,093/- made by the AO on the basis of order of the TPO on account of services provided by the assessee in the shape of corporate guarantee.
• 3. Deletion of addition of Rs.1,07,30,843/- made by the AO under section 14A.
• 4. Appreciation of the fact that expenditure of Rs.10,90,37,706/- on account of interest is not directly attributable to a particular income of receipt.
• 5. Deletion of addition of Rs.21,156/- made by the AO under section 40(a) as TDS thereon was deposited after the specified time.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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