9911796707
TMI Blog2024 (3) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... having a mark up of 25% which is the rate prescribed under the Safe Harbour Rules, no other ALP adjustment could be made by the revenue is not acceptable in view of the fact that if an item falls under the definition of Eligible International Transaction as defined in Rule 10TC of the Income Tax Rules (hereinafter referred to as the Rules). Definition of Eligible International Transaction in Rule 10TC is for the purpose of applicability of Safe Harbour Rules only. Hence the international transaction of interest on outstanding receivables does not figure in any of the clauses (i) to (x) in the aforesaid list. Hence the assessee would not be able to get the benefit of ALP adjustment getting subsumed in the mark up of 25% offered unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposing an adjustment of Rs. 4,70,258/-, is bad in law. 2. The Ld. AO have erred, on facts and in law, by referring the case of the Assessee to the Ld. TPO for determination of ALP on the fact that the Assessee has opted for the safe harbor regulations in accordance to Section 92CB of the Act read with Rule 10TA to Rule 10TG of the Rules which is bad in law and void ab initio and the DRP erred to uphold the same. 3. Without prejudice to the above, the Ld. AO and the Ld. TPO have erred, on facts and circumstances of the case and in law, in erroneously charging arbitrary interest rate on alleged delayed payment in collection of receivables. 4. Based on the facts and circumstances of the case and in law, the Ld. AO has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total expenses (including depreciation) incurred during the year as per the Safe Harbour. The assessee has entered into an intercompany agreement with its AE with respect to provision of web designing and 3D visualization software services. The invoice wise details raised by the assessee to its AE together with the details of agreed credit period, date of realization of each invoice was sought for by the ld. TPO and the same were duly furnished by the assessee. The ld. TPO / AO had made an addition on account of transfer pricing adjustment to Arm s Length Price (ALP) by imputing interest on outstanding receivables from the AE in respect of invoices which had been realized beyond the agreed credit period of 60 days as granted by the ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agency registered with the Securities and Exchange Board of India, is of the adequate to highest safety; (vi) provision of contract research and development services wholly or partly relating to software development; (vii) provision of contract research and development services wholly or partly relating to generic pharmaceutical drugs; (viii) manufacture and export of core auto components; 1 [***] (ix) manufacture and export of non-core auto components 2 [; or] 2 [(x) receipt of low value-adding intra-group services from one or more members of its group,] by the eligible assessee. 6. This definition of Eligible International Transaction in Rule 10TC is for the purpose of applicability of Safe Harbo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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