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2022 (9) TMI 1083 - AT - Income TaxTP Adjustment - Interest on delayed receivables - AO treated interest on delayed receivables as a separate international transaction and called on the assessee to furnish invoice-wise details of all trade receivables from AE during the year - HELD THAT:- As considering the decision of the of the coordinate bench of the Tribunal and the judgment in the case of AMD (India) Pvt. Ltd. [2018 (8) TMI 2094 - KARNATAKA HIGH COURT] we hold that the treatment of interest on deferred receivables is rightly considered as an independent international transaction and benchmarked separately by the revenue authorities. Calculation of interest we notice that the assessee had submitted the invoice wise details before the AO. In respect of the services rendered by the Assessee to its AE, it raises invoices, under which the AE is granted 90 days’ time to make payment. During the course of hearing the AR brought to our attention that the TPO in assessee’s own case for the assessment year 2014-15 has allowed the credit period of 90 days and prayed that the same may be allowed for the year under considered. Since the TPO has not done a separate bench marking for the interest on delayed receivables, we remit the issue back to the TPO for fresh consideration. TPO is directed to consider the payables by the assessee to AEs and also the fact that TPO in the AY 2014-15 has given a credit period of 90 days while computing the interest on receivables. Needless to say that the assessee may be given reasonable opportunity of being heard. Depreciation on networking equipment - HELD THAT:- We find that the issue is no longer res-integra and has been decided in the case of Mphasis Ltd. [2021 (3) TMI 1072 - KARNATAKA HIGH COURT] wherein held that computer accessories such as switches and routers form part of peripherals of computer system and hence entitled to depreciation at 60%. Following the same, we allow this ground by the assessee. Disallowance u/s. 14A - HELD THAT:- In the instant case, the AO has considered the entire investments for the purpose of arriving at the average investments, which is not in conformity with the ratio laid down by the decision of VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] - Respectfully following this decision of the Special Bench, we remit the issue back to the AO to recompute the disallowance u/s. 14A r.w.r.8D(2)(iii) taking into account only those investments for computing average value of investment which yielded exempt income during the year. Non-granting of deduction u/s. 80G - We direct the AO to verify and allow deduction u/s. 80G towards the donations made by the assessee in accordance with law after giving reasonable opportunity of being heard. MAT credit - AO is directed to grant relief of additional MAT credit on the recomputed income as per the directions given above. Short credit of TDS - As submitted that the AO has not given the credit for TDS as has been claimed by the assessee. We therefore direct the AO to verify the claim of the assessee and allow the tax credit in accordance with law.
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