9911796707
TMI Blog2018 (11) TMI 1946X X X X Extracts X X X X X X X X Extracts X X X X ..... recalled this earlier Tribunal order dated 28.11.2017 for the limited purpose for deciding ground nos. 5 and 6 of the assessee's appeal because these two grounds were rejected as per the earlier Tribunal order on this basis that this issue was not raised before the lower authorities but in the order in M.P. No. 73/Bang/2018 dated 20.04.2018, it is held by the Tribunal that the finding of the Tribunal vide para 12 of the earlier Tribunal order are contrary to material on record and therefore, the Tribunal order was recalled for the limited purpose of adjudicating ground nos. 5 and 6 of the assessee's appeal. Hence now we have to decide ground nos. 5 and 6 of assessee's appeal. These grounds are as under. "5. That the AO / DRP / Transfer P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 212 days and in some other cases, 182 days and he submitted that if for the extra credit period allowed, interest is worked out on the basis of 3 months LIBOR for March 2011 + 200 (annual) Basis Points, the chargeable interest rate comes to 0.81% for excess period and the amount of such interest is only Rs. 3,38,702/-. Regarding the credit period as per agreement, he submitted that the relevant agreement is available on pages 187 to 217 and as per page no. 187 of paper book, the credit period allowed is 180 days. Regarding charging of interest at LIBOR + 200 Basis Points (annual) as per the chart of the assessee, it was submitted that in Assessment Year 2014-15, the AO himself has accepted charging of interest at LIBOR + 400 Basis Points ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such circumstances, it is not justifiable to presume so. But this Tribunal order is not on this aspect that when a fixed credit period is allowed to any customer, the prices charged are on the basis of such credit period allowed to the assessee and if the actual credit period allowed is more than the agreed credit period then the prices to be charged has to be more and chargeability of such extra price is not dependent on this aspect that assessee is having interest bearing borrowed funds or not because even in a case where the assessee is not using any interest bearing borrowed funds then also the prices to be charged to the customers whether AE or not will be depending on an agreed credit period to be allowed to the customer and if the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was received beyond the agreed credit period by the assessee from its AE and the same should be considered as a separate international transactions and appropriate interest on that account should be brought to tax in the present case as TP adjustment. The working given by the ld. AR of assessee in this regard is placed on record but this working is only in respect of debtors as on 31.03.2011 but if the debts are already liquidated during the year but the receipt was after expiry of agreed credit period then the amount of such realization during the present year beyond the agreed credit period should also be considered for this purpose. Hence on this issue, we restore the matter back to the file of AO/TPO for fresh decision by examining th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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