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2018 (5) TMI 2142 - AT - Income TaxTP Adjustment - ALP adjustment on account of interest on receivables from AE - CIT(A) remitted this matter back to AO/TPO to consider the rate of interest on domestic term deposit of SBI instead of 14.45% with a clear cut direction to restrict the interest up to the end of the year - HELD THAT:- In the case of GSS Infotech Ltd. [2016 (7) TMI 243 - ITAT HYDERABAD] as held whether it is AE or non-AE, it is in the interest of business that assessee receives the foreign exchange early so that it can claim deduction u/s. 10A. Therefore, in our view, putting a limit of two months of credit period itself is arbitrary. Moreover, as seen from the calculation provided in page 7 of the assessment order, the date of realization was shown as 02- 02-2011 and interest was levied from 01-04-2010 to 0202-2011 which is not pertaining to the year under consideration. As far as this year is concerned, the invoices raised on 31-12-2009 were outstanding only for a period of three months by the end of the accounting year. We are of the opinion that this period is reasonable and so no interest can be levied, just because amounts are shown as 'outstanding'. Accordingly, we cancel the interest levied and allow assessee's contentions - thus we set aside the order of CIT(A) and allow the grounds raised by the assessee on this issue.
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