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2023 (11) TMI 190 - ITAT HYDERABADTP Adjustment - interest on delayed receivables - Assessee pleaded that the deferred receivables do not constitute a separate international transaction requiring benchmarking and such a treatment is bad under law and working capital adjustment would take into account the impact of outstanding receivables and no need to impute any interest on receivables - HELD THAT:- TPO in unequivocal terms noted that even in respect of such sample evidence, no ledgers of the parties, confirmation that no interest was charged, any agreement in that respect, or any other evidence to prove that what was mentioned as terms of payment on invoices was not followed – was not submitted. Furnishing of mere invoices and calculations is not sufficient compliance with the directions of the learned DRP. If the assessee substantiates the invoices, the supporting evidence like ledgers confirmations etc., at least to the tune of Rs. 18.46 lakhs, such sample evidence would have been sufficient. But it is not so in this case. We, therefore, do not find any merits in the contention of the assessee. Suffice it to say that the interest shall be charged only at 6% p.a. in respect of the receivables outstanding for more than 30 days. Issues No. 3 to 8 area allowed in the above terms. Deduction u/s 10AA - Assessee filed rectification application and the CPC allowed the deduction u/s 10AA - Subsequently, in the draft assessment order AO did not make any disallowance on this account and, therefore, there is no occasion for the assessee to carry this to the learned DRP- HELD THAT:- AO missed this aspect while passing the final assessment order dated 18/01/2022 and added the sum by way of disallowance of deduction under section 10AA - These are all undisputed facts. It is not the case of the Revenue that for any reason, the order passed u/s 154 cannot be acted upon - we see no reason not to accept the action of AO while passing the draft assessment order and the order u/s 154 allowing the deduction u/s 10AA of the Act. We, therefore, direct the AO to delete the addition made on this account
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