Construction Industry News
Tata Steel Ltd has successfully challenged the division's transfer pricing claim of Rs 100 crore in the Income Tax Appellate Tribunal ruling in favor of the steelmaker. A bench of Amit Shukla and Padmavathy S also ruled in favor of Tata Steel on disallowance of interest paid on non-convertible perpetual debentures of approximately Rs 266 crore, disallowance of license encashment provision of approximately Rs 324 crore and other admission claims.
The Transfer Pricing Officer (TPO) had attempted to implement a transfer pricing adjustment due to the market interest rate paid for electricity supplied by the company's own power plant.
The Assessing Officer (AO) also disallowed deduction of interest paid on debentures by Tata Steel as it treated the debentures issued as equity and not as loans. The court did not agree with the AO's findings as the auditor certified the deduction amount to be around Rs 324 crore.
389
699
589
814
1999
3854
6000
10000
18496
29593
6809
13599
399
799
3723
7399
149
449
149
599
399
999
692
1599
350
799
10865
17384
