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2016 (9) TMI 446 - AT - Income TaxAddition made on account of interest for delayed realisation of revceivables from AE - TPA- Held that:- We modify the order of CIT(A) in deleting entire upward adjustment made on account of interest receivable on delayed realisation of export proceeds from A.E., and restrict the disallowance to ₹ 49,66,277/- as there was delay of 76 days more than the delay in case of credit extended by the assessee to Non-AE. Interest rate has been confirmed for earlier year was US LIBOR rate for debts of 1 year maturity period. Hence, such rate for financial year 2008-09 is 2.83%. Accordingly as in the last year, Libor plus 2% works out to 4.83%. Hence, the interest working will be 49.66 crores (net receivables x 4.83%x76 days/365=49,66,277/-). Thus, an amount of ₹ 49,66,277/- will be the transfer pricing adjustment on account of charging of interest to trade debt in r/o A.E.’s. Thus, instead of deleting entire addition as done by CIT(A), we upheld the addition to the extent of ₹ 49,66,277/-. Computation of book profit u/s.115JB without including income earned from unit in Special Economic Zone (SEZ), which is exempt u/s.10A - Held that:- We confirm the action of CIT(A) for directing the AO to exclude the profit earned from unit exempt u/s.10A while computing book profit u/s.115JB of the I.T.Act.
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