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2023 (2) TMI 837 - AT - Income TaxTP adjustment - SWD segment - Comparable selection - HELD THAT:- Companies whose turnover in the current year is more than Rs.200 Crores should be excluded from the list of comparable companies. R S Software Ltd. - As identical to the case of Barracuda Networks India Private Limited [2022 (5) TMI 322 - ITAT BANGALORE] decided by the Tribunal and respectfully following the same, we hold that if R S Software Ltd. if at all to be considered as comparable the margins for AY 2014-15 & 2015-16 have to be ignored and not to be considered as comparable. Interest on delayed receivables - delay in realisation of receivables as separate international transaction -TPO computed the notional interest by applying the interest rate of 4.985% i.e. 6 months LIBOR + 450 basis points and considering the credit period of 45 days - HELD THAT:- The impugned issue is squarely covered by the decision of the coordinate Bench of the Tribunal in the case of Swiss Re Global Business Solutions India Pvt. Ltd [2022 (1) TMI 1275 - ITAT BANGALORE] and the judgment 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. With regard to calculation of interest, respectfully following the above decision we hold that it would be appropriate to take the LIBOR rate + 2%. For this purpose, we place reliance on the judgment of the Bombay High Court in the case of CIT v. Aurionpro Solutions Ltd. [2017 (6) TMI 1087 - BOMBAY HIGH COURT] Disallowance of trade payable and certain other expenses u/s. 37 - AO made an adhoc disallowance of 30% of the actual expenses on trade payables, rent expenses, legal and professional expenses and forex losses - disallowances were made on the ground that the Assessee failed to furnish details with respect to the aforesaid expenditures - details were furnished before the AO under the rectification application - HELD THAT:- DRP has given a direction to consider the confirmations produced by the assessee and that the details listed above as submitted by the assessee have not been considered while deciding the disallowance. We therefore remit the issue back to the AO to take into consideration the details/confirmations submitted by the assessee to decide the allowability in accordance with law after giving reasonable opportunity of being heard to the assessee.
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