Siddhayu Aayurvedic Research Foundation Pvt. Ltd. vs. ACIT Circle 4(3) (2)

Parties Involved

Facts Summary

Siddhayu Aayurvedic Research Foundation Pvt. Ltd. (Appellant) filed an appeal against the order of the Assessing Officer passed under section 144C of the Income Tax Act, 1961, and the order of the Dispute Resolution Panel (DRP) passed under section 144C (5) of the Act. The Appellant challenged the assessment order for the assessment year 2017-18, which included disallowance of a write-off of a loan advanced to a subsidiary in Indonesia, transfer pricing adjustments, and the levy of interest under section 234B of the Act. The Appellant argued that the loan write-off was allowable as a business loss under section 37 of the Act, and that the transfer pricing adjustments and interest were erroneous.…

Legal Issues

• 1. Disallowance of write-off of loan advanced to subsidiary in Indonesia
• 2. Transfer pricing adjustment on account of alleged corporate guarantee
• 3. Levy of interest under section 234B of the Act

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Tata Consumer Products Limited vs. Assistant Commissioner of Income Tax

  Kolkata Bench benchAY 2021-22Partly Allowed

• M/s. Tega Industries Limited Vs. D.C.I.T., Circle -11(1), Kolkata

• SRF Limited vs NeAC, New Delhi

• YKK India P. Ltd. vs DCIT

  Delhi Bench benchAY 2011-12, 2012-13, 2013-14, 2014-15Partly Allowed

• McKinsey Global Capabilities & Service P. Ltd. vs. Additional/Joint/Deputy/Assistant Commissioner of Income Tax

• M/S Fiberhome India (P) Ltd. vs ACIT, Circle-7(1), New Delhi