Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 1087 - AT - Income TaxTP Adjustment - Arm’s length price ‘ALP’ adjustment qua interest on receivables involving its overseas Associated Enterprises ‘AEs’ - CIT-DR’s contention that the TPO as well as the CIT(A) have rightly treated the foregoing bench mark as per the short term deposit rate in the State Bank of India and therefore, the same deserves to be upheld - HELD THAT:- We find no merit in Revenue’s instant argument since such a short term deposit cannot be taken at par with an international transaction u/s.92B of the Act as the latter involves foreign currency and overseas market conditions. In addition to this, learned lower authorities have also not adopted any comparable transaction in the very segment as well so as to come to the conclusion that the assessee’s receivables in case of overseas AEs involved more than the market practice of reasonable time period. We keep in mind all these clinching aspects and direct the TPO to delete the impugned ‘ALP’ adjustment in issue. The assessee’s sole substantive ground to this effect stands accepted in the above terms.
|