M/s. Lineage Power Private Limited, Bangalore V. The Deputy Commissioner Of Income Tax, Circle- 4(1)(1), Bangalore

ITA 2309/BANG/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6029 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-07-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 05-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing
• Section: 143(3); 201; 144C

Judgement Text

IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUTANT MEMBER IT(TP)A NO.2309/BANG/2019 ASSESSMENT YEAR: 2015-16 M/S. LINEAGE POWER PVT. LTD. PLOT NO.V-12, INDUSTRIAL ESTATE BENGALURU-MYSORE HIGHWAY KUMBALAGODU BANGALORE PAN NO : AAFCP5474M VS. DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-4(1)(1) BENGALURU APPELLANT RESPONDENT APPELLANT BY : SHRI NARENDRA KUMAR JAIN, A.R. RESPONDENT BY : SHRI PRADEEP KUMAR, D.R. DATE OF HEARING : 27.07.2020 DATE OF PRONOUNCEMENT : 28.09.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ASSE SSMENT ORDER PASSED BY THE ASSESSING OFFICER FOR ASSESSMEN T YEAR 2015-16 U/S 143(3) R.W.S. 144C OF THE INCOME-TAX ACT,1961 [ 'THE ACT' FOR SHORT] IN PURSUANCE OF DIRECTIONS ISSUED BY LD. DISPUTE RE SOLUTION PANEL (DRP). 2. AT THE TIME OF HEARING, THE LD. AR SUBMITTED THA T THE ASSESSEE IS PRESSING GROUNDS NUMBERED AS 4 (B) TO 4(D) AND G ROUND NO.6. ACCORDINGLY, THE REMAINING GROUNDS ARE DISMISSED AS NOT PRESSED. THE GROUND NOS.4(B) TO 4(D) RELATES TO TRANSFER PRI CING ADJUSTMENT IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 2 OF 9 MADE IN RESPECT OF SPECIFIED DOMESTIC TRANSACTIONS AND GROUND NO.6 RELATES TO INTEREST CHARGED U/S 234A OF THE ACT. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF PROVIDING ENERGY MANAGEMENT SOLUTIONS TO TELECOM AND TELECOM TOWER OPERATORS. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS ENTERED INTO SPECIFIED DOMESTIC TRANSACTION WITH IT S ASSOCIATED ENTERPRISES AS DETAILED BELOW: SPECIFIED DOMESTIC TRANSACTIONS AS PER FORM 3CEB PARTICULARS AMOUNT IN PAYABLE TOTAL PURCHASE OF POWER MANAGEMENT ITEM AND SPARES 324575469 324575469 REMUNERATION 2700000 2700000 327275469 4. THE ASSESSEE ADOPTED TNMM AS MOST APPROPRIATE ME THOD AND OP/OR AS PROFIT LEVEL INDICATOR. THE PLA OF THE AS SESSEE WAS WORKED OUT AT 4.24% BY THE ASSESSEE. THE ASSESSEE HAD CHO SEN TWO COMPARABLE COMPANIES WHOSE ARITHMETICAL MEAN MARGIN WAS 7.42%. ACCORDINGLY, THE ASSESSEE SUBMITTED THAT SPECIFIED DOMESTIC TRANSACTIONS ARE AT ARMS LENGTH AFTER CONSIDERING THE RANGE OF +/- 3%. 5. THE TPO HOWEVER, NOTICED THAT THE OTHER INCOME O F THE ASSESSEE IS RS.3,42,04,985/-. HOWEVER, THE ASSESSEE HAS TAK EN THE OTHER INCOME AT RS.31,51,104/-. ACCORDINGLY, THE TPO COM PUTED THE OPERATING PROFIT OF THE ASSESSEE BY TAKING OTHER IN COME AS RS.3,42,04,985/-. ACCORDINGLY, THE PLI OF THE ASSE SSEE WAS WORKED OUT AT 2.16% BY TPO. FOR THE SAKE OF CONVENIENCE, WE EXTRACT BELOW THE WORKINGS FURNISHED BY THE ASSESSEE AND ALSO THE WORKING MADE BY THE TPO. IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 3 OF 9 THE FINANCIALS OF THE TAXPAYER FOR THE F.Y. 2014-15 AS PER THE TP DOCUMENT IN RESPECT OF AE TRANSACTIONS ARE AS UNDER: PARTICULARS TOTAL AMOUNT TOTAL REVENUE 1209752366 LESS: OTHER INCOME 3151104 LESS: INTEREST RECEIVED ON FIXED DEPOSITS 5559513 OPERATING REVENUE 1201041750 TOTAL COST: 1171416508 LESS: FINANCE COST 21243109 LESS: PRELIMINARY EXPENSES WRITTEN OFF 26652 OPERATING COST 1150146747 OPERATING PROFITS 50895002 OPERATING PROFITS/OPERATING REVENUE 4.24% THE SEGMENTAL FINANCIALS OF THE TAXPAYER FOR THE F. Y. 2014-15 AS COMPUTED BY THE TRPO ARE AS UNDER: PARTICULARS AMOUNT IN INR TOTAL INCOME 1209752366 LESS: OTHER INCOME 34204985 TOTAL OPERATING INCOME 1175547381 TOTAL EXPENSES 1171416508 LESS: FINANCE COST 21243109 TOTAL OPERATING EXPENSES 1150173399 TOTAL OPERATING PROFIT 25373982 OP/OC 2.21% OP/OR 2.16% 6. THE ASSESSEE HAD ALSO SOUGHT FOR WORKING CAPITAL ADJUSTMENT AND IT WAS REJECTED BY THE TPO BY OBSERVING THAT TH E ADJUSTMENTS CANNOT BE PROVIDED IN A GENERIC MANNER WITHOUT SHOW ING AS TO HOW DIFFERENCE IN WORKING CAPITAL HAS IMPACTED PROFIT M ARGINS OF EACH OF THE COMPARABLE COMPANIES. ACCORDINGLY, THE TPO MAD E ADJUSTMENT OF RS.6,18,51,634/-. 7. BEFORE LD. DRP, THE ASSESSEE SUBMITTED THAT THE DIFFERENCE IN OTHER INCOME HAS ARISEN ON ACCOUNT OF THE FACT THAT THE ASSESSEE HAS IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 4 OF 9 SET OFF REIMBURSEMENT RECEIVED BY IT IN RELATION TO A RENTAL EXPENDITURE INCURRED BY IT. THE ASSESSEE MADE DETA ILED SUBMISSIONS BEFORE LD. DRP IN THIS REGARD. ACCORDINGLY, THE AS SESSEE CONTENDED BEFORE LD. DRP THAT EITHER BOTH RENTAL EXPENDITURE AND REIMBURSEMENT SHOULD BE REMOVED FROM THE WORKINGS O R BOTH SHOULD BE TAKEN INTO ACCOUNT BY NETTING OFF THE RENT EXPEN DITURE AND REIMBURSEMENT. THE LD. DRP DID NOT AGREE WITH THE CONTENTIONS OF THE ASSESSEE WITH REGARD TO THE CLAIM OF ASSESSEE F OR WORKING CAPITAL ADJUSTMENT ALSO, THE LD. DRP DID NOT AGREE WITH THE CONTENTIONS OF THE ASSESSEE. THE ASSESSEE ALSO CONTENDED THAT THE TPO HAS MADE ADJUSTMENT AT ENTITY LEVEL INSTEAD OF RESTRICTING T HE SAME TO SDT TRANSACTIONS ONLY. LD DRP AGREED WITH THE SAME AND ACCORDINGLY DIRECTED THE TPO TO RESTRICT THE ADJUSTMENT TO SDT TRANSACTIONS ONLY. IN VIEW OF THE SAME, THE TP ADJUSTMENT CAME DOWN TO RS.1,75,92,364/-, WHICH WAS ADDED BY THE ASSESSING OFFICER IN THE FINAL ASSESSMENT ORDER. 8. THE LD. AR SUBMITTED THE ASSESSEE WAS EARLIER KN OWN AS PACE SOLAR FARMS (I) PVT. LTD. DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION, IT OCCURRED A BUSINESS OF M/S. GE POWER ELECTRONICS INDIA POWER LIMITED BY ENTERIN G INTO AN AGREEMENT DATED 8.5.2014. THE ASSESSEE PURCHASED B USINESS OF GE POWER AS A GOING CONCERN ON SLUM SALE BASIS ON MUTU ALLY AGREED TERMS AND CONDITIONS AS LAID OUT IN THE AGREEMENT. POST THE PURCHASE OF BUSINESS, THE NAME OF THE ASSESSEE WAS CHANGED T O M/S. LINEAGE POWER PVT. LTD. 9. AS PER THE AGREEMENT, ALL THE CONTRACTS ENTERED INTO BY GE POWER HITHER TO SHALL BE TRANSFERRED TO THE ASSESSE E. IT WAS NOTICED THE ASSESSEE HAD ENTERED INTO A LEASE AGREEMENT FOR FIXED PERIOD OF 9 IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 5 OF 9 YEARS WITH A LOCK IN PERIOD OF 9 YEARS. THE SUBMIS SIONS MADE IN RESPECT OF THE LEASE AGREEMENT BEFORE LD. DRP ARE E XTRACTED BELOW. THE AGREEMENT ON PAGE 21 PARA 6.1.3 CLAUSE (III) A LSO PROVIDES THAT THE LEASE AGREEMENT AS ENTERED INTO BY GE POWER SHALL BE TAKE N OVER BY THE ASSESSEE AND THE PREMISES AS PREVIOUSLY OCCUPIED BY GE POWER WIL L NOW BE TAKEN ON LEASE BY THE ASSESSEE. GE POWER HAD ORIGINALLY ENTERED INTO A LEASE AGREEM ENT WITH SITA RATAN FOUNDATION PVT. LTD. (SUB-LESSEE, WHO HAD TAKEN PRO PERLY ON LEASE FROM SRI. RAMESH CHAND NAHAR WHO WAS THE SOLE AND ABSOLUTE OW NER OF THE IMMOVABLE PROPERTY SITUATED AT SURVEY NO. 186/3 KHAWHA,NO. 11 7, HOODI VILLAGE, KRISHNARAJAPURAM HOBLI, MAHADEVPURA POST, WHITEFIEL D ROAD, BANGALORE FOR THE SAID PREMISES) ALONG WITH HIRE OF FURNITURE. SU BSEQUENTLY THE PREMISE WAS TRANSFERRED TO MNG ESTATES PVT LTD ON MARCH 16, 201 1. THE SAID LEASE AGREEMENT WAS ORIGINALLY ENTERED FOR A PERIOD OF 9 YEARS BEGINNING FROM 27 SEPTEMBER 2008 AND ENDING' ON 26 SEPTEMBER 2017 . THE ENTIRE TERM OF THE LEASE WAS UNDER A LOCK-IN PERIOD, WHICH MEANT THAT BOTH T HE PARTIES WERE OBLIGED TO HONOUR THE AGREEMENT OR ELSE PAY RENT FOR BALANCE M ONTHS AS PENALTY. DURING THE COURSE OF NEGOTIATION OF BUSINESS TRANSF ER, THE ASSESSEE BECAME AWARE OF LEASE AGREEMENT. THE ASSESSEE REALIZED THA T THIS MEANT THAT. POST THE . PURCHASE OF THE BUSINESS FROM GE POWER, ALONG WITH OTHER OBLIGATIONS' OF GE POWER THE LEASE AGREEMENT ALSO HAD TO BE HONORED BY THE ASSESSEE FOR THE BALANCE PERIOD OF 39 MONTHS (I.E. 9 YEARS - 69 MONT HS OCCUPIED BY GE POWER). ASSESSEE OWING TO THE FINANCIAL VIABILITY OF BUSINE SS POST TAKE OVER AND THE FACT THAT PACE GROUP ALREADY HAD A BUSINESS PREMISES THR OUGH WHICH IT WAS CONDUCTING ITS EXISTING BUSINESS OPERATIONS, COMMUN ICATED ITS CONCERN TO GE POWER THAT IT COULD NOT TAKE OVER THE LEASE PREMISE S AND BEAR THE RENTAL EXPENDITURE AS IT WOULD INCREASE ITS OPERATING COST AND IMPACT ITS WORKING CAPITAL REQUIREMENTS. GE POWER, REALIZING THE FACT THAT THE ASSESSEE HAD RESERVATION ON TAKING OVER THE LEASE PROPERTY AND THIS WOULD ACT AS A HINDERAN CE IN SUCCESSFUL TRANSFER OF THE BUSINESS TO THE ASSESSEE, AS A MATTER OF BUSINE SS PRUDENCE AGREED TO BEAR THE COST OF RENTAL EXPENDITURE FOR FURTHER PERIOD O F 24 MONTHS POST THE BUSINESS TRANSFER AND SUCH AMOUNT WOULD BE TRANSFERRED IMMED IATELY TO THE ASSESSEE. POST 24 MONTHS, THE ASSESSEE HAD TO BEAR THE RENTAL EXPENSE. ACCORDINGLY, GE POWER MADE A ONETIME TRANSFER OF RS.7,79,48,305/ - TO ASSESSEE THROUGH ELECTRONIC BANK TRANSFER (RTGS) ON 30.06.2014 (RELE VANT EXTRACT OF BANK STATEMENT ATTACHED AS ANNEXURE 41. THIS FACT IS ALS O BROUGHT OUT IN THE BUSINESS TRANSFER AGREEMENT WHICH CLEARLY STALES THAT THE SE LLER (GE POWER) WOULD MAINTAIN A FIXED DEPOSIT OF RS. 7,79,48,305/- AT TH E TIME OF TRANSFER THE RELEVANT EXTRACT OF THE AGREEMENT IS ATTACHED BELOW: (V) THE SELLER SHALL HAVE A BALANCE OF ATLEAST RS. 7,79,48,305/- (RUPEES SEVEN CRORE SEVENTY NINE, LAKHS FORTY EIGHT THOUSAN D THREE HUNDRED AND FIVE ONLY) IN FIXED DEPOSITS MAINTAINED WITH BA NKS (*FIXED DEPOSITS'); AND SINCE, THE LESSOR HAD SOLD THE SAID PREMISES TO M/S MNG ESTATES PRIVATE LIMITED ; THE ASSESSEE ENTERED INTO A LEASE AGREEMENT WITH M/ S. MNG ESTATES PRIVATE LIMITED IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 6 OF 9 ON 01.07.2014 (RENT AGREEMENT ATTACHED AS ANNEXURE 5). AS PER LEASE AGREEMENT, PAGE 8 CLAUSE B(1)(I) THE ASSESSEE HAD OBLIGATION T O OPEN FIXED DEPOSIT WITH CANARA BANK, ACCORDINGLY, THE ASSESSEE TRANSFERRED THE AMOUNT RECEIVED FROM GE POWER TO ESCROW ACCOUNT WITH A STANDING INSTRUCTION TO TRANSFER EVE RY MONTH A PREDETERMINED AMOUNT OF RENT TO THE ACCOUNT OF MI S MNG ESTATES PRIVATE LIMITED (COPY OF COMMUNICATION TO CANARD BANK PROVI DING THE INSTRUCTIONS ATTACHED AS ANNEXURE 6). FOR THE BALANCE PERIOD OF 15 MONTHS THE ASSESSEE AGREED TO PROVIDE A BANK GUARANTEE TO THE LESSOR (B REAK-UP OF RENT CALCULATION ATTACHED AS ANNEXURE 7). FOR FY 2014-15, ASSESSEE OCCUPIED THE ABOVE LEASED PROPERTY FOR A PERIOD OF 9 MONTHS STARTING FROM 01.07.2014 AND ENDING ON 31.03 .2015. DURING FY 2014-15, ASSESSEE HAS INCURRED A TOTAL OF RS.2,75,55,090/- A S RENTAL EXPENDITURE. OUT OF THE SAID EXPENDITURE, RS.2,54,94,368/- WAS RELATING TO THE PREMISES FOR WHICH IT HAD RECEIVED REIMBURSEMENT FROM GE POWER. ACCORDINGLY, WHILE COMPUTING ITS OPERATING MARGINS, THE ASSESSEE CONSIDERED RS. 2,75 ,55,090/- AS PART OF ITS OPERATING COST AND THE REIMBURSEMENTS RECEIVED IN R ESPECT OF RENTAL EXPENDITURE AMOUNTING TO RS.2,54,94,3681-. AS PART OF OPERATING REVENUE. THE REIMBURSEMENT RECEIVED IS ALSO OFFERED TO TAX BY THE ASSESSEE. HOWEVER, WHILE COMPUTING OPERATING MARGIN OF THE AS SESSEE, THE LEARNED TPO HAS EXCLUDED REIMBURSEMENTS RECEIVED FROM OPERA TING REVENUE BUT AT THE, SAME TIME INCLUDED, THE TOTAL RENTAL EXPENDITU RE AS PART OF OPERATING EXPENDITURE. IN THIS REGARD, THE ASSESSEE SUBMITS THAT THE REIMB URSEMENTS RECEIVED BY IT FROM GE POWER IN RELATION TO RENTAL EXPENDITURE NEEDS TO BE CONSIDERED AS OPERATING INCOME. THE ASSESSEE HAS RECEIVED THE REIMBURSEMENT S TOWARDS RENTAL EXPENDITURE, WHICH IS PART OF ITS OPERATING EXPENDI TURE. THEREFORE, REIMBURSEMENT RECEIVED TOWARDS RENTAL EXPENDITURE S HOULD BE CONSIDERED AS OPERATING IN NATURE. 10. THE LD. AR SUBMITTED THAT THE REIMBURSEMENT REC EIVED BY THE ASSESSEE WAS TO OFFSET THE RENT PAID BY IT. SINCE THE RENTAL EXPENDITURE HAS BEEN TAKEN AS OPERATING EXPENDITURE , THE REIMBURSEMENT RECEIVED TOWARDS THE RENT SHOULD ALSO BE TAKEN AS OPERATING INCOME. ACCORDINGLY, HE PRAYED THAT THE PRAYER OF THE ASSESSEE BE CONSIDERED FAVOURABLY. 11. WE HEARD LD. D.R. AND PERUSED THE RECORD. FROM THE SUBMISSIONS MADE BY LD. AR BEFORE US AND ALSO BEFOR E LD. DRP, WE NOTICE THAT THE ASSESSEE WAS BINDING AGREEMENT TO P AY RENT TO M/S. MNG ESTATES PVT. LTD. DURING THE LOCK IN PERIOD AS PER THE ORIGINAL AGREEMENT ENTERED BY M/S. GE POWER, THE ERSTWHILE L ANDLORD. SINCE IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 7 OF 9 THE ASSESSEE FOUND TO BE A FINANCIAL BURDEN, AN UND ERSTANDING HAS BEEN REACHED BY THE ASSESSEE AND M/S. GE POWER AS P ER WHICH A SUM OF RS.7,79,48,305/- WAS TO BE PAID BY M/S. GE POWER WHICH AMOUNT SHALL BE APPROPRIATED PROPORTIONATELY TOWARDS RENTA L EXPENDITURE. ACCORDINGLY, A SUM OF RS.2,54,94,368/- WAS APPROPR IATED TOWARDS THE RENTAL EXPENDITURE DURING THE YEAR UNDER CONSID ERATION AND ACCORDINGLY, THE ASSESSEE HAS TREATED THE ABOVE SAI D AMOUNT AS REIMBURSEMENT RECEIVED BY IT TOWARDS RENTAL EXPENDI TURE. IT IS PERTINENT TO NOTE THAT THE ASSESSEE HAS PAID RENT O F RS.2,75,55,090/- DURING THE YEAR UNDER CONSIDERATION. 12. THE QUESTION THAT ARISES IS WHETHER THE REIMBUR SEMENT AMOUNT RECEIVED BY THE ASSESSEE CAN BE IGNORED WHIL E CONSIDERING THE RENTAL EXPENDITURE AS OPERATING EXPENDITURE. 13. IN OUR CONSIDERED VIEW, IT IS IMPERATIVE TO EXA MINE AS TO WHETHER THE ASSESSEE HAS UTILISED THE PREMISES FOR WHICH RENTAL HAS BEEN PAID FOR THE PURPOSE OF BUSINESS CARRIED ON BY THE ASSESSEE. IF THE SAID PREMISES HAS BEEN SO UTILISED, THEN THE RE NTAL EXPENDITURE SHOULD BE TAKEN AS OPERATING EXPENDITURE. IT IS AN UNDISPUTED FACT THAT M/S. GE POWER HAS GIVEN THE MONEY TO THE ASSES SEE ONLY IN RESPECT OF RENTAL EXPENDITURE BURDEN THAT IS GOING TO BE BORNE BY THE ASSESSEE. IN THAT CASE, THE REIMBURSEMENT OF RENTA L EXPENDITURE, IN OUR VIEW, IS INTRICATELY RELATED TO THE RENTAL EXPE NDITURE. ACCORDINGLY, IF RENTAL EXPENDITURE IS CONSIDERED AS AN OPERATING EXPENDITURE, THEN THE REIMBURSEMENT SHOULD BE SET OFF AGAINST THE REN TAL EXPENDITURE AND NET RENT EXPENDITURE SHOULD BE TAKEN AS OPERATI NG EXPENDITURE. ON THE OTHER HAND, IF THE RENTAL EXPENDITURE IS NOT CONSIDERED AS OPERATING EXPENDITURE, THEN BOTH RENTAL EXPENDITURE AND REINVESTMENT OF REIMBURSEMENT RECEIVED BY THE ASSES SEE SHOULD BE EXCLUDED WHILE COMPUTING PLI OF THE ASSESSEE. IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 8 OF 9 14. SINCE THE ABOVE FACTS REQUIRE EXAMINATION, WE F EEL IT PROPER TO RESTORE THIS ISSUE TO THE FILE OF A.O./TPO TO EXAMI NE IT AFRESH IN THE LIGHT OF DISCUSSIONS MADE (SUPRA). 15. WITH REGARD TO THE CLAIM OF WORKING CAPITAL ADJ USTMENT, IT WAS THE SUBMISSIONS OF THE ASSESSEE THAT THE RELEVANT D ETAILS HAVE BEEN FURNISHED TO THE TAX AUTHORITIES. THE LD. A.R. SUB MITTED THAT THE ASSESSEE WOULD BE IN A POSITION TO FURNISH EXPLANAT IONS AND INFORMATION IN THIS REGARD TO THE A.O./TPO. IN VIE W OF THE ABOVE, WE ARE OF THE OPINION THAT THE CLAIM OF WORKING CAPITA L ADJUSTMENT ALSO REQUIRES EXAMINATION AT THE END OF A.O./TPO. 16. IN VIEW OF THE ABOVE, WE RESTORE THE ISSUE OF T RANSFER PRICING ADJUSTMENT TO THE FILE OF A.O./TPO. 17. THE NEXT ISSUE RELATES INTEREST CHARGED U/S 234 A OF THE ACT. IT IS THE SUBMISSION OF THE ASSESSEE THAT THE RETURN O F INCOME HAS BEEN FILED BY IT WITHIN THE DUE DATE PRESCRIBED U/S 139( 1) OF THE ACT AND HENCE NO INTEREST IS CHARGEABLE U/S 234A OF THE ACT . SINCE THE FACTS RELATING TO THIS ISSUE ALSO REQUIRE EXAMINATION, WE RESTORE THIS ISSUE ALSO TO THE FILE OF A.O. IT(TP)A NO.2309/BANG/2019 M/S. LINEAGE POWER PVT. LTD., BANGALORE PAGE 9 OF 9 18. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH SEPT, 2020. SD/- (N.V. VASUDEVAN ) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 28 TH SEPT, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.