Writ petition was filed challenging the dismissal of rectification application of the appellant. Issue before the Tribunal was where the AO had disallowed part of interest expenditure under S. 36(1)(iii) on the ground that funds were utilised to give interest free advances to subsidiary company, which was not a business purpose, the Tribunal was wrong in remanding the matter to the AO to decide the issue by invoking Transfer Pricing provisions. However, as the AO had already passed the order, pursuant to such remand, and deleted the addition accordingly the writ petition had become academic. (AY.2011-12)
Piramal Glass (P) Ltd. v. Dy. CIT (2019) 102 taxmann.com 176/176 DTR 134 (Bom.)(HC)
S. 254(2) : Appellate Tribunal–Rectification of mistake apparent on record-Where the issue before the Tribunal was of allowability of deduction, it was incorrect to remand the matter with a direction to apply transfer price provisions-AO had already passed the order, pursuant to such remand, and deleted the addition accordingly the writ petition had become academic. [S. 36(1)(iii), S. 92C, 254(1), Art. 226]