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2021 (10) TMI 909 - AT - Income TaxTP Adjustment - addition of interest on receivables - adjustment on account of interest on overdue intra-group receivable - HELD THAT:- As the interest on intra-group receivable is less than the interest on intra-group payables, therefore, the adjustment on account of interest on overdue intra-group receivable does not hold good. Assessee had transactions with both AEs and Non-AEs and accordingly, a comparison of outstanding position in terms of debtor days in both the AE as well as non-AE transactions can be done for determining whether the credit period extended to the AEs is at arm's length or not. The debtor days given to the AEs are less than the debtor days given to the non-AEs. Also contended that it did not levy any interest on delayed payments made by the non-AEs, despite the fact that the debtor days given to the non-AEs were more than the debtor days given to the AEs and therefore, justified not to charge interest on the delayed payments by the AEs as well. At times 120 days are given to the non-AE entity for payment from billing date. In view of the above discussion, the ld. CIT(A) held that the AO/TPO is not justified to charge interest on receivables without factoring in the payables to the AE/AEs. Having considered the entire facts and found them to be irrefutable, we decline to interfere with the order of the ld. CIT(A). - Decided in favour of assessee.
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