Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 2035 - ITAT BENGALURUTP Adjustment - outstanding receivable from Associated Enterprises exceeding 6 months, thus par take character of the loan - as per TPO non-charging of interest requires ALP adjustment and applying the yield rate on B rate Bonds @ 13.46% on the outstanding debts exceeding 6 months suggested - whether transaction of allowing excess period of credit to Associated Enterprises without charging any interest during such credit period would amount to International Transaction within the meaning of section 92B? - HELD THAT:- Transaction of receivables from Associated Enterprises is International Transaction and not charging interest for a period exceeding 6 months requires ALP adjustment. Therefore the grounds of appeal filed by the Assessee are dismissed. Deduction u/s 10A - reducing loss of Hyderabad unit against Chennai unit - HELD THAT:- This issue is no longer res integra, as it is covered by the decision of CIT vs. Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT] wherein it was held that deduction u/s 10A is qua the eligible under taking of the assessee standing on its own without reference to other eligible units or undertakings of the Assessee. Benefit of deduction u/s 10A is given to the undertaking and the deduction u/s 10A would be prior to the exercise to be undertaken under chapter IV for arriving at the total income of the Assessee.
|