Disallowance of interest paid on ECB loans

Last updated: 11 January 2021

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The Income Tax Appellate Tribunal (ITAT) Bangalore has ruled on an appeal concerning the disallowance of interest paid on External Commercial Borrowing (ECB) loans for the assessment year 2011-12. The appeal also covered issues related to transfer pricing adjustments, additional depreciation on computers, and deductions under Section 10A of the Income-tax Act.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the assessmentorder dated 31.12.2015 passed by the A.O. u/s 143(3) r.w.s 144C of the Act for assessment year 2011-12 in pursuance of directions given by Ld. Dispute Resolution Panel (DRP).

Citation :
IT(TP)A No.411/Bang/2016

IN THE INCOME TAX APPELLATE TRIBUNAL
“A’’ BENCH: BANGALORE

BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER
AND
SHRI B.R. BASKARAN, ACCOUNTANT MEMBER

IT(TP)A No.411/Bang/2016
Assessment Year: 2011-12

Maxim India Integrated Circuit Design
Pvt. Ltd.
4th Floor, Tower B., Commercio @ Mantri
Survey No.51/2, 51/3,
Devarabisanahalli, Survey No.39/5,
Kariyammana Agrahara Village
Varthur Hobli
Bangalore-103
PAN NO : AACCM9437E
APPELLANT

Vs.

Deputy
Commissioner of
Income-tax
Circle-4(1)(2)
Bangalore
RESPONDENT

Appellant by : Shri Padam Chand Khincha, A.R.
Respondent by : Shri Rajesh Kumar Jha, D.R.

Date of Hearing : 30.12.2020
Date of Pronouncement : 05.01.2021

O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

The assessee has filed this appeal challenging the assessmentorder dated 31.12.2015 passed by the A.O. u/s 143(3) r.w.s 144C of the Act for assessment year 2011-12 in pursuance of directions given by Ld. Dispute Resolution Panel (DRP).

2. The grounds and additional grounds urged by the assessee give rise to the following issues:-

a) Addition relating to transfer pricing adjustment

b) Disallowance of interest paid on ECB loans.

c) Additional depreciation claimed on computers

d) Deduction u/s 10A of the Income-tax Act,1961 ['the Act' for short] in respect of disallowance of interest on ECB loans and additional depreciation.

To know more in details find the attachment file

FAQ :

The primary issue is the disallowance of interest paid on External Commercial Borrowing (ECB) loans by the Assessing Officer.

This ruling pertains to the assessment year 2011-12.

The ruling also considered transfer pricing adjustments, additional depreciation claimed on computers, and deductions under Section 10A of the Income-tax Act.

The appellant was Maxim India Integrated Circuit Design Pvt. Ltd.