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TMI Blog2021 (10) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) r.w.s. 144C(13) r.w.s. 143(3A) and 143(3B) of the Income Tax Act, 1961 ('the Act'). Heard both the parties. Case file perused. 2. We notice at the outset that assessee's instant appeal suffers form 33 days delay in filing. Learned counsel submitted that due to the outbreak of pandemic covid 19 unable to get the documents form the department which caused the impugned delay in filing of the instant appeal. Case law Collector Land Acquisition Vs. Mst. Katiji & Ors, 1987 AIR 1353 (SC) and University of Delhi Vs. Union of India, Civil Appeal No. 9488 & 9489/2019 dated 17th Dec., 2019, hold that such a delay; supported by cogent reasons, deserves to be condoned so as to make way for the cause of substantial justice. We accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstances of the case and in contrary to law, the Ld. TPO erred in and the Hon'ble DRP further erred in upholding confirming the action of the Ld. TPO in rejecting the transfer pricing analysis/study prepared by the Appellant, without appreciating that none of the conditions mentioned in clauses (a) to (d) of Section 92C(3) of the Act were satisfied. 3. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred and the Hon'ble DRP further erred in upholding confirming the action of the Ld. TPO in rejecting certain appropriate filters adopted by the Applicant in its transfer pricing study and in applying certain inappropriate filters to select new comparable companies. 4. On the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed * Sasken Communication Technologies Limited * Intense Technologies Limited 7. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred in and the Hon'ble DRP further erred in uploading/confirming the action of Ld. TPO in inappropriately rejecting the following companies which fulfill all the filters of the Ld. TPO and are functionally comparable to the Appellant: * Sagar Soft (India) Limited * Infomile Technologies Limited * Nucleus Software Exports Limited * E-Zest Solutions Limited * Ace Software Exports Limited * Sankhya Infotech Limited * Harbinger Systems Private Limited 8. On the facts and circumstances of the case and in contrary to law, the Ld. TPO erred in and the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect to interest on outstanding receivables is untenable and be deleted since the addition has been made by computing interest on an invoice to invoice basis as against on a weighted average basis for all invoices raised during the year under consideration. 13. Without prejudice to the other grounds, on the facts and in the circumstances of the case and in law, the Ld. TPO erred in and the Hon'ble DRP further erred in upholding/confirming the action of the Ld. TPO in considering the SBI's short term deposit rates instead of the LIBOR rate as the CUP to benchmark the impugned interest on delay in receipt of outstanding receivables even though the receivables are denominated in foreign currency. Consequential: 14. On the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y find prima facie merit in the assessee's instant foregoing argument and restore the instant former issue back to Transfer Pricing Officer (TPO) for his afresh adjudication as per law within three effective opportunities of hearing. 5. Next comes the latter issue pertaining to interest on receivables at ALP adjustment of Rs. 4,01,30,490 computed as per the SBI short term deposit rate. We find from a perusal of the TPO's order dt. 29.10.2019 page 61 that he appears to have gone by earlier estimation only whilst determining a credit period of 30 days only. Learned counsel quote case law Technimont ICB Limited Vs. DCIT (Third Member) (2013) 32 taxman.com 357 (Mum) that an AE itself does not form a comparable since the corresponding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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