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2019 (12) TMI 902 - AT - Income TaxTP Adjustment - Comparable selection - TPO rejected M/s. R System International Ltd. as comparable on the ground that this company is having different financial year ending i.e. December - CIT(A) directing Transfer Pricing Officer to include M/s. R System International Ltd. as comparable - HELD THAT:- When financial results are available in the public domain and result of M/s. R. Systems International Ltd. has been recasted on the basis of audited quarterly result and audited financial results, we are of the considered view that no error has been committed by the ld. CIT (A). So, we find no ground to interfere into the findings returned by the ld. CIT (A) on this issue, hence ground no.1 is determined against the Revenue. Benchmarking of receivables on the ground that receivables were not separate international transactions - recharacterisation was not permitted, non-application of SBI base rate for benchmarking etc. and has given invoice details of receivables along with their duration, proceeded to apply the interest @ 11.69% to bring the transactions qua receivables at arm’s length by deeming the receivables outstanding beyond the period stipulated in the service agreement/invoice as deemed loan advanced - HELD THAT:- Following the order passed by the Tribunal in taxpayer’s own case for AY 2009-10 [2018 (4) TMI 926 - ITAT DELHI] we are of the considered view that in the instant case, the period of outstanding receivables is ranging between 25 days to 365 days and facts and circumstances are identical, so no interest can be charged on the receivables with AEs, hence ld. CIT (A) has rightly ordered to delete the addition. Consequently, ground no.2 is determined against the Revenue.
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