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2019 (10) TMI 1547 - AT - Income TaxTP Adjustment - notional interest on the outstanding receivables from a domestic group company - ‘deemed' international transaction - transaction for the purposes of Chapter X of the Income-tax Act, 1961 - Meaning of international transaction u/s 92B. (1) - transaction entered into between two domestic related parties - whether transaction between the Appellant and RNIPL is a deemed international transaction within the meaning of section 92B(2) ? - HELD THAT:- As the requisite conditions for characterising a transaction as an “international transaction” within the meaning of Sec. 92B is not satisfied in the case before us, therefore, we have no hesitation in concluding that san existence of an international transaction, the A.O could not have made an adjustment under Sec.92C of the Act. Our aforesaid view is fortified by the order of the coordinate bench of the Tribunal in the case of M/s Astrix Laboratories Ltd. [2015 (1) TMI 1008 - ITAT HYDERABAD] As the assessee neither falls within the sweep of the meaning of an international transaction as envisaged in sub-section (1) of Sec. 92B, nor is covered by the extended meaning of a ‘deemed‘ international transaction as provided in sub-section (2) of Sec. 92B, therefore, the adjustment made by the A.O under Sec. 92C cannot be principally sustained, and is liable to be vacated. Before parting, we may also observe, that as the provisions pertaining to transfer pricing of specified domestic transactions as envisaged in Sec.92BA of the Act, had been made available on the statute vide the Finance Act, 2012 w.e.f 01.04.2013 i.e from A.Y. 2013-14, therefore, the same would not be applicable to the case of the assessee before us for the year under consideration i.e A.Y. 2012-13. Be that as it may, we may herein observe that it is not even the case of the revenue that the A.O had made the aforesaid T.P Adjustment under Sec.92BA of the Act. On the basis of our aforesaid observations, we delete the addition made by the A.O under Sec.92C of the Act. Accordingly, the order of the CIT(A) is set aside. Decided in favour of assessee.
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