Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1835 - HC - Income TaxAddition on account of reference u/s 92CA (1) - sham export transaction - no interest on amount received by the assessee in advance from its AE in earlier years - HELD THAT:- The form and substance of the transactions are the same. The Transfer Pricing Officer has not brought on record any material to demonstrate and establish that the form and substance of transactions are different. It is not, and it cannot be, the case of the Transfer Pricing Officer that the export transaction was a sham transaction to finance the AE. It is also observed that even on the amount received by the assessee in advance from its AE in earlier years, no interest was paid. Never in the past, the assessee has charged any interest from its export customers on delayed realization of its sales proceeds. Meaning thereby, the stand of the assessee that it has not charged interest on the delayed realization of debts in non-AE institutions, has rightly been accepted by the ITAT because it is admitted position of the case that no interest is charged from non AE/s, which is independent transaction as well, there cannot be any occasion to make ALP adjustment for notional interest on delay in realization of trade debts from AE/s. The finding given by the learned ITAT is based upon factual aspect of the matter, therefore, no question of law emerges for consideration in this regard. Allowability of loss - HELD THAT:- So far as second substantial question of law, as suggested by the learned counsel for the appellant is concerned, we are of the opinion that the learned ITAT has remanded the question of claim of loss of ₹ 701.08 lacs and passed order that AO shall verity whether the loss has ultimately been allowed in the A.Y.2010-11 and if not, then the same be allowed in the year under consideration.
|