Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 919 - AT - Income TaxRectification of mistake u/s 254 - ALP adjustment on “interest on receivables” - HELD THAT:- Tribunal has considered and held that it is an international transaction which needs TP adjustment. Thereafter, the Tribunal has set aside the issue to the file of the TPO to calculate the average collection period of the industry and also to charge interest only on the period beyond the industrial average. We find that the assessee had raised additional grounds of appeal vide letter dated 6.9.2018 and is part of the record in which the assessee is raising a ground that it is a debt free company and that no borrowed funds were utilized to pass on the facility to its AE. Tribunal, inadvertently missed to consider and decide on the admissibility of the additional grounds and if they were to be admitted, to consider the merits of the additional grounds of appeal filed by the assessee. If these grounds are admitted and allowed, then the consequences/result of such decision would have an impact on the decision already taken by the Tribunal. Therefore, these grounds may need adjudication by the Tribunal. Therefore, we are of the opinion that there is a mistake apparent from the record which needs rectification. ALP adjustment towards “interest on outstanding receivables” - HELD THAT:- On going through the order of the Tribunal, we find that for the A.Y 2014-15, we have followed the decision of the ITAT in the assessee’s own case for the A.Y 2013-14 and have remanded the matter to the file of the AO for calculating the industrial average period of collection and directed the AO not to charge interest if the receivables were collected within the industrial average period. We find that we have not adjudicated the specific ground raised by the assessee in Ground No.2.1 which are similar to the additional grounds 5 and 6 raised by the assessee for the A.Y 2013-14. Therefore, we deem it fit and proper to recall the order of the Tribunal dated 12-06-2019 only for adjudication of Ground No.2.1 raised by the assessee in the appeal. M.A. is accordingly allowed.
|