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2022 (1) TMI 1085 - AT - Income TaxTP Adjustment - adjustment on receivables - arms length price adjustment in the assessment order going by S.B.I’s 14.45% interest rate; and that too, without adopting any segmental comparable in the assessee’s segment of business support services - HELD THAT:- We note with able assistance of both the parties that the Transfer Pricing Officer’s order has relied on assessee’s alleged inter-company agreements executed with its associated enterprise only for determining the corresponding credit period in the business transactions as 30 days only. We thus make it clear that the learned lower authorities have not adopted any segmental comparable whilst arriving at the impugned adjustment. We quote Tecnimont Icb Pvt Ltd., Mumbai [2013 (9) TMI 595 - ITAT MUMBAI] and Sabic Innovative Plastic India Pvt Ltd [2013 (9) TMI 596 - ITAT AHMEDABAD] holding that an associate enterprise itself would not to be taken as a comparable since lacking the independent nature of an uncontrolled transaction in forming hallmark of Chapter X of the Act. We thus delete the impugned arms length price adjustment on receivables for this precise reason alone. Decided in favour of assessee.
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