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2022 (12) TMI 998 - ITAT HYDERABADTP adjustment - comparable selection - functional Dissimilarity - HELD THAT:- When an extra ordinary event takes place by way of amalgamation, then that company cannot be considered as a comparable. Companies functionally dissimilar with that of assessee and with huge turnover need to be deselected from final list. Interest on outstanding receivables - as submitted DRP had bench marked the international transaction by taking the Short Term deposit rate of SBI - HELD THAT:- DRP had restricted the charging of interest for the delayed period after allowing the reasonable period of 30 days. Accordingly, the Assessing Officer / TPO was directed to recompute the interest based on delay period. We do not find any error in the said finding recorded by the DRP. Rate of interest, the assessee had raised the alternative argument of applying the Libor plus as the outstanding amount is receivable in foreign currency - In the present case, the receivable from A.E. was Rs.1,47,99,409/-, which is almost 1/8th of the total turnover of the assessee. In view of the above and respectfully following the decision of Kusum Health Care [2017 (4) TMI 1254 - DELHI HIGH COURT] we restrict the levy of interest on outstanding receivables to Libor plus 250 points. The other arguments raised by the Revenue supporting the charging of bank rate interest on the short term deposit is left open to be decided in appropriate case. Accordingly, these grounds are partly allowed.
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