Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 31 - AT - Income TaxTP Adjustment - Upward adjustment towards notional interest made in respect of outstanding receivables - Upward adjustment towards notional mark up on a transaction in respect of the Liason Support services - AR submitted that approximately 179 days delay was incurred in realization of sale invoices beyond the credit period extended by the assessee company and therefore, CIT(A) has rightly deleted the upward adjustment - HELD THAT:- It is pertinent to note that the CIT(A) has given a detail finding that the copy of invoices clearly shows that terms of delivery and payment is 180 days from the date of appeal of lading. Therefore, interest is not to be charged up to outstanding period less than 180 days. CIT(A) has further observed that the TPO has charged interest for 335 days which is not correct but at the same time the TPO has rightly applied the rate at 3.05% which is LIBOR + Foreign Fluctuation Adjustment (FFA) and accordingly the adjustment was confirmed. As per RBI policy credit of 180 to 360 days the assessee has to be granted the upward adjustment. No fault pointed out by the DR in respect of delay period which is less than 180 days. There is no need to interfere with the findings of the CIT(A). Appeal of the Revenue is dismissed.
|