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2015 (9) TMI 1681 - ITAT MUMBAITP Adjustment - interest calculated @ 18% on the delayed credit period on the import made by AEs beyond 180 days - HELD THAT:- Assessee has undertaken 33 transaction of exports for the value aggregating ₹ 18.45 crores, out of which in 25 transactions, the payments was received well before the expiry of credit period of 180 days. For the balance 8 transactions, in 6 transactions the delay was less than 30 days as given in the table incorporated above. If overall credit period of all the 33 transactions is to be analyzed, then it is evident that the average credit period for all the transactions is only 139 days, the working for which has been given at page 5 of the paper book. For making any adjustment in the arms length price, a comparability analysis is to be carried out with the uncontrolled transactions to benchmark the price or profit in a third party situation. Here in this case, neither the TPO nor the assessee has given any comparable instance as to whether in such a situation or condition an unrelated party would have charged interest. If in the majority transaction there no delay then for few transactions interest cannot be imputed, unless it is benchmarked with the transactions with some unrelated parties. However, no such comparable instance has been filed or sown before us. 8 transactions where there is a delay beyond the period of 180 days, the interest if at all, should be levied. Then same should be on the basis of LIBOR + 150 points (i.e. 1.5%) - we direct the TPO/AO to apply the interest rate of LIBOR + 1.5% and worked out the adjustment on account of interest for the transactions, which are beyond the period of 180 days. Accordingly, grounds raised by the assessee are partly allowed.
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