Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 356 - ITAT HYDERABADTP Adjustment - ALP Adjustment towards notional interest on receivables from Associated Enterprises - HELD THAT:- Since, the transactions are cross-border, it would be appropriate to adopt LIBOR rate of interest while computing the notional interest on receivables from the AEs. This Bench of the Tribunal has held so on various earlier occasions with respect to the same issue. Further, it will also be appropriate for netting off the notional interest with respect to the debit and credit transaction with the assessee's AEs because when notional interest is charged on receivables the same should also be charged on payables. Therefore, in the case of the assessee we hereby hold that LIBOR rate of interest shall be adopted while computing the notional interest on receivables and payables for the transaction with AEs. Further, on considering the nature of trade of the assessee, we find it appropriate to fix the grace period of 30 days while computing the notional interest towards the debit and credit transaction with the AEs. It is ordered accordingly. Disallowance of club expenditure - AO made the addition stating same was not justified as business expenditure by the assessee in the Form-3CD - HELD THAT:- As before us, the assessee has not substantiated that the expenditure was incurred for the purpose of the assessee's business. Hence, we hereby confirm the addition made by the ld. AO. Adhoc disallowance towards expenditure incurred on freight and towards expenditure incurred on repairs - HELD THAT:- AO observed that there were several self-made vouchers which were not accessible for verification. Therefore, the Ld. AO estimated the disallowance of freight/transport expenses and with respect to repairs and other expenditure. Considering the facts and circumstances of the case, we do not find it necessary to interfere with the order of the ld. AO on the issue because it is an admitted fact that several Bills and Vouchers were not verifiable. - Decided against assessee.
|