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.
999
1999
469
699
75
0
250
495
3989
0
1149
1999
13798
27599
429
780
270
799
15032
21990
