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2013 (12) TMI 1535 - ITAT MUMBAITransfer pricing adjustment on account of notional interest on delayed payment from the A.E. - Held that:- Some kind of adjustment is required to be made on such transaction with the A.E. Looking to the fact that in the case of non-A.E., there has been maximum delay of 200 days, we are of the opinion that for bench marking the same, upto the delay of 200 days in the case of A.E. also, no interest should be chargeable. In case of delay beyond the period of 200 days, the transfer pricing adjustment is required to be made on account of charging of some interest. The learned Counsel for the assessee was required to furnish the working of period of delay which are beyond 200 days and to calculate interest at the LIBOR rate prevalent for the financial year 2007-08 plus 150 points i.e., 1.5%. The learned Counsel for the assessee has submitted this working before us. As per the said working the learned Counsel informed that LIBOR rate during the financial year 2007-08 was around 4.7% and if 1.5% is added, then interest rate would work out to 6.21%. Accordingly, we direct the Assessing Officer / TPO to verify the working and apply interest rate of LIBOR + 1.5% and workout the adjustment on account of interest for the period beyond 200 days. The assessee will furnish this working before the TPO for verification. Thus, the grounds raised by the assessee are treated as partly allowed.
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