2023 (6) TMI 969

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..... ircumstances of the case and in law, the Hon'ble DRP vide its directions dated 7 October 2020 grossly erred in upholding addition pertaining to interest on outstanding receivables made by the Learned AO to returned income of the Appellant vide draft assessment order dated 19 December 2019 passed under section 143(3) of the Act. Each of the ground is referred to separately, which may kindly be considered independent of each other and without prejudice to each other. That on the facts and circumstances of the case and in law, 1. The Learned AO/ TPO/ DRP have erred in making an addition of INR 12,074,056 to the total income of the Appellant due to adjustment in the arm's length price ("ALP") of the international transaction pertainin .....

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..... s length interest. vi. Without prejudice to Ground No. 3(i), 3(ii) and 3(iii) above, the Learned AO/ TPO/ DRP have failed to appreciate that even if interest needs to be charged on the receivables, the average receivable days of comparable companies selected by the Learned DRP/TPO, should be considered to establish arm's length interest. 4. The Learned AO has grossly erred both in facts and in law in proposing to charge interest under section 234Aof the Act. 5. The learned AO has erred in initiating penalty under section 271(1)(c) of the Act." 3. Brief facts of the case are that the assessee is engaged in the business of providing software consulting, systems design, enterprise application and computer programming services to its cus .....

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..... , the assessee filed an appeal before the ITAT challenging the additions made by the AO/TPO and DRP. We have heard both the parties and perused the material on record. 5. Ld. Counsel of the assessee submitted that the identical issue was considered by this Tribunal in the immediately preceding assessment year and this Tribunal has remitted the matter with certain directions to TPO/ AO. He submitted that his arguments for the current year will also remain the same, hence he prayed for similar directions. 6. Per contra, ld. DR for the Revenue submitted that assessee has also submitted petition for acceptance of additional evidences. To this, ld. Counsel for the assessee submitted that he shall not be pressing for admission of additional evi .....

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