ITAT Mumbai Rejects TP Adjustment as Preference Shares Cannot Be Treated as Loans Without Evidence

ACIT Vs Aegis Limited (ITAT Mumbai) The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2016–17. The dispute involved two primary issues: (i) transfer pricing adjustment relating to preference share transactions with an associated enterprise (AE), and (ii) disallowance of interest expenditure under section 36(1)(iii) of the Income-tax Act. On the transfer pricing issue, the assessee had entered into transactions involving subscription and redemption of non-cumul...