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TMI Blog2023 (6) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... C (13) of the Income Tax Act, 1961 (for short "the Act"), consequent to the directions of Hon'ble Dispute Resolution Panel, Bengaluru ("DRP"), assessee filed this appeal. 2. At the outset, though this appeal has been filed on various grounds, at the time of arguments, learned AR confined to two issues only. One is payment for global/regional management overhead allocation fee and the other is interest on trade receivables. All the other grounds are given up. 3. Brief facts of the case are that the assessee is a company engaged in conducting quantitative and qualitative market research and related services primarily to third-party customers. Assessee also provides related back-office data processing services primarily to its group comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Tribunal considered this issue and held that the matter requires factual verification at the end of the learned Assessing Officer/learned TPO in view of the need for the assessee to file the additional documentary evidence in support of their claim. Learned AR submitted that for this year also, the same situation prevails and, therefore, this issue may be restored to the file of learned Assessing Officer/learned TPO for considering the documentary evidence to be filed by the assessee in line with the orders for the earlier assessment years. Learned DR does not dispute for this issue, to be sent to the learned Assessing Officer/learned TPO for factual verification as claimed by the assessee. Copies of the orders stated above are filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Chemical India Private Limited vs. ITO in ITA No. 1467/Hyd/2019, by order dated 05/09/2022 had taken a view that in these sorts of cases, the ends of justice would be met by accepting the interest rate on similar foreign currency receivables/advances as LIBOR+200 points, and if the Bench comes to the conclusion that the assessee is liable on this aspect, the same view may be adopted in this case also. 8. Per contra, learned DR submitted that this aspect does not leave any scope for any discussion in view of the decision of the Hon'ble Bombay High Court in the case of CIT Vs. Patni Computer Systems (2013) 215 Taxmann 108 (Bom), wherein the amendment to Section 92B of the Act by Finance Act, 2012 with retrospective effect from 01/04/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted. This aspect is no longer res integra and dealt with by the Mumbai Bench of the Tribunal in the case of Tecnimont ICB House (supra) and confirmed by the Hon'ble Bombay High Court. CottonNaturals (I) (P.) Ltd. (supra) is also on the same aspect. 10. Insofar as the interest on receivable is concerned, Munbai Bench of the Tribunal, vs. DCIT [2015] 60 taxmann.com 143 (Mumbai - Trib.) considered the view taken in Everst Kanto Cylinder Ltd. v. Asstt. CIT (LTU) [2014] 52 taxmann.com 395 (Mum.); PMP Auto Components (P.) Ltd. v. [IT Appeal No. 1484 (Mum.) of 2014, dated 22-8-2014]; Hinduja Global Solutions Ltd. v. Addl. CIT [2013] 145 ITD 361/35 taxmann.com 348 (Mum.); Tata Autocomp Systems Ltd. v. Asstt. CIT [2012] 52 SOT 48/21 taxmann.co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi) the Hon'ble Delhi High Court considered the question - whether the interest rate prevailing in India should be applied, for the lender was an Indian company/assessee, or the lending rate prevalent in the United States should be applied, for the borrower was a resident and an assessee of the said country, observed that such a question must be answered by adopting and applying a commonsensical and pragmatic reasoning and held that the interest rate should be the market determined interest rate applicable to the currency concerned in which the loan has to be repaid; that the interest rates should not be computed on the basis of interest payable on the currency or legal tender of the place or the country of residence of either party. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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