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2023 (6) TMI 275 - ITAT HYDERABADTP Adjustment - TO after applying the Profit Split Method had made the upward addition to the income of the assessee - Interest on delayed trade receivables - international transaction referred by the assessee in form 3CB was only linear agency services with Maxicon containers line Pte Ltd for which the assessee had shown the revenue - HELD THAT:- When though the assessee was carrying the composite business and the profit of the linear agency services and the corresponding expenditure can be worked out with precision, then it is easy for the lower authority to compare the prices charged by the assessee from its AE, with the other comparable company carrying the same/similarly situated activities with the unrelated parties. The above-mentioned aspect has not been considered by both the lower authorities. In the light of the above we are of the considered opinion that the matter is required to be sent back to the file of the Ld. TPO for fresh adjudication after affording opportunity of hearing to the assessee. While exercising the de novo assessment, the Ld. TPO shall keep in mind the profile and business activities of the assessee, the international transaction entered into by the assessee as mentioned in form 3CB. The above said exercise shall be carried out by the TPO, after following the due process of law and after affording opportunity of hearing to the assessee. TPO may apply any method as may be applicable in the facts of the present case after affording opportunity of hearing to the assessee as provided under Rule 10B of Income Tax Rules . As we are remanding back the TP adjustment to the file of the Ld. transfer pricing officer, we also deem it appropriate to remand back the addition on account of trade receivable to the file of the Ld. transfer of pricing Officer, with the direction to recompute the trade receivables in the light of our decision in the case of Apache Footwear India Pvt [2023 (4) TMI 521 - ITAT HYDERABAD]. We direct the AO to determine the ALP and compute the same by adding notional interest @ 6% on the receivable beyond a period of 60 days. This ground is partly allowed.
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