TMI Blog2017 (12) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... bles after excluding the depreciation, in accordance with the directions of the DRP. The grounds on this issue are therefore, treated as allowed for statistical purposes. Interest on receivable - assessee had transactions with both the AEs and non-AEs and has not charged “interest on the receivable” - Held that:- Where the assessee is not charging interest on both AE and non-AE transactions and the receivables are outstanding for a period of less than six months, no interest can be charged. For the receipts beyond six months also, we find that the interest is not chargeable because the assessee has not charged any interest on receivable from the non-AEs. Therefore, the grounds of appeal relating to this issue are also treated as allowed. - ITA Nos. 836, 815, 816, 817/Hyd/2016 & 916/Hyd/2017, ITA No. 475/Hyd/2017 - - - Dated:- 15-12-2017 - Smt. P. Madhavi Devi, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For Assessee : Shri P. Soma Sekhar Reddy, DR For Revenue : Shri P. Murali Mohan Rao ORDER Per Smt. P. Madhavi Devi, J. M. Above appeals are filed by the Revenue as well as the assessee for the A.Ys 2004-05, 2007-08 to 2009-10 2012-13. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for ready reference: 6. We heard the parties and perused the impugned orders of the lower authorities. The only question that clinches the issue involved in this appeal is whether for becoming eligible to the deduction under S.10B of the Act, whether it is enough if the assessee is registered with Software Technology Park of India as a 100% EOU or it is also necessary for the assessee to have the approval of the Board constituted by the Central Government under S.14 of the Industries (Development and Regulation) Act, 1951. The CIT(A) has decided this issue in favour of the assessee, and held the assessee as eligible for deduction under S.10B of the Act, following the decisions of the co-ordinate Benches of the Tribunal in the following cases- (a) VSN Makro Technology P. Ltd. V/s. ACIT (ITA No.1057/Hyd/2010) dated 13.1.2011, wherein the still earlier decision of the Tribunal in the case of Infotech Enterprises Ltd. (supra), relied by the assessing officer in the impugned assessment order has been considered and the same has been held to be inapplicable as the same has been rendered prior to issuance of Instruction No.1 dated 31.3.2006 by the CBDT and letter dated 23.3.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Karnataka High Court (cited Supra) wherein it has been held that for the purpose of computation of deduction u/s 10B of the Act, if any expenditure is excluded from the export turnover, then the same should also be excluded from the total turnover. Respectfully following the same, we do not see any reason to interfere with the order of the CIT (A) for all the A.Ys and the Revenue s appeals are accordingly dismissed. ITA No.475/Hyd/2017 (Assessee s appeal) for A.Y 2012-13 7. This is assessee s appeal for the A.Y 2012-13. In this appeal, though the assessee has raised as many as seven grounds of appeal and a number of sub-grounds under each of the ground, we find that only two issues are arising in this appeal. The issues are (i) (ALP adjustment in respect of software development services; and (ii) interest on receivables. 8. As regards the first issue, the learned Counsel for the assessee submitted that the AO has not followed the direction of the DRP to take the profit before depreciation of both the assessee as well as comparable companies for determining the ALP, as the assessee is a partnership firm, while the comparables taken by the TPO are companies and the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod of six months except in one case where it was received after 12 months. We find that the Coordinate Bench of this Tribunal in the case of GSS Infotech Ltd in ITA No.497/Hyd/2015 has considered similar issue and at Para 10 to 12 of its order has held as under: 10. Assessee relied on the following case law that no interest can be charged on credit which are given in the course of business. No interest can be charged on mobilization advance it cannot be treated as loan as it has been given during the course of business. Pegasystems Worldwide India Pvt. Limited, Hyderabad, ITA No.1758/H 2014 --------------------------------------- Indo American Jewellery Ltd. Vs. DCIT 9(2), Mumbai. [2012] 18 taxmann.com 303 (Mum.) Litnas India (P.) Ltd., Vs. ACIT [2012] 27 taxmann.com 300 (Mumbai-Trib.) Evonik Degussa India (P.) Ltd., Vs. ACIT - OSD Circle-3(1), taxmann.com 285 (Mumbai) Nimbus Communications Ltd., taxmann.com 298 (Mumbai-Trib.) Interest charged on receivables 10.1. The DR however, while accepting that levy was for the period beyond the accounting year, however, justified the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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