assessee that it is in correct on part of TPO'
to recharacterize FCCDs as loan for benchmarking international
transaction of Interest payment on CCDs ... circumstance
mentioned in EKL Appliances Ltd case where International
transaction can be recharacterized by TPO as per OECD guidelines'
as Since no arguments
looking at' the transactions and sans any material, such a
recharacterization of transaction by 'look through' approach is purely
hypothetical, based ... next issue relates to disallowance to Rs. 23,71,65,830/- by
recharacterizing the share application money as interest free advance.
The facts in brief
Without prejudice to the other grounds, the Assessing Officer erred in
recharacterizing bonafide interest payment transaction, by splitting a
transaction of single nature interest payment ... course of argument, the ld.AR had submitted that the
TPO cannot recharacterize the nature of FCCD as equity to loan. In this
regard
economic substance of a transaction differed from its form.
The TPO, therefore, recharacterized the transactions of issue of
debentures into shares and determined ... section
98 follow, as per which the transaction can be, inter alia,
recharacterized. It is apposite to note that the AO cannot
simply
section 98 follow, as per which the transaction can be, inter alia,
recharacterized. It is apposite to note that the AO cannot simply ... relevant point of
time, the TPO could not have ventured to recharacterize the transaction of
debt into equity.
7. At this stage, it is befitting
Lg Electronics India Pvt. Ltd., Uttar ... vs Assessee
आयकर अऩीऱीय अधधकरण, ददल्ऱी विशेष न्यायऩीठ, नई
crore (supra) that was made by the
A.O by recharacterizing the share application money received by the assessee
company as unexplained cash credits ... order of the CIT(Appeals) who had rightly vacated the
recharacterization of the share application money of Rs.32 lac received by the
assessee company
repayment of CCDs and interest on Rupee
Denominated Bonds (RDBs), by recharacterizing the same to be
equity.
iii. Short credit of tax deducted at source ... basis that in the absence of
specific Thin capitalization Rules in India, recharacterization of Debt
Capital as equity Capital and disregarding of interest
facts and circumstances of the present
case.
Grounds on Transfer Pricing Adjustments
Recharacterization of outstanding trade receivables as separate international
transaction :
2. The learned ... from ground No.2
to 9 of assessee's appeal is recharacterization of outstanding trade
receivables as separate international transaction. The Assessing Officer
erred in not appreciating the transaction and has grossly erred in
recharacterizing it.
16. That, in view of the facts and circumstances of the case ... looking at" the
transactions and sans any material, such a recharacterization of
transaction by "look through" approach is purely hypothetical, based
