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TMI Blog2023 (12) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. The grounds raised by the assessee reads as under : "1). Grounds against imputing interest on outstanding receivables due from AEs - Adjustment of INR 1,85,87,919 a) Not appreciating that outstanding receivables is not covered in the definition of international transaction as defined u/s 92B of the Act in the facts and circumstances of the case; b) Not appreciating that the receivables are consequential/ closely linked to the principal transaction of services and hence have been aggregated for determination of ALP under TNMM; c) Not appreciating the fact that the working capital adjustments, if undertaken takes into account the impact of outstanding receivables of the controlled transactions vis-à-vis the uncontrolled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y.2018-19 declaring total income of Rs. 822,84,01,030/- on 28.09.2018. The return of income was processed by CPC determining total income u/s.143(1)(a) at Rs. 849,99,22,282/-. Thereafter, the case was selected for scrutiny assessment through CASS and statutory notice u/s.143(2) of I.T.At, 1961 was issued on 22.09.2019 through ITBA and duly served upon the assesses. Subsequently, notices u/s.142(1) along with detailed questionnaire was issued on 10.08.2021 and duly served. The assesses company has submitted its response on 04.10.2019 & 26.08.2021. After verification of the information filed/submitted, Assessing Officer completed the assessment. 3.1. During the course of assessment, it was observed that assessee company was having internat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee at the time of passing of order giving effect by the Assessing Officer, the Assessing Officer had declined to grant the relief to the assessee. 6. Per contra, ld. DR has submitted that the assessee had not provided the details before the TPO before passing of the order on 30.07.2021 and the invoices raised by the assessee were beyond the contractual period as they were raised in the month of September whereas the invoices were required to be raised within the period provided by the agreement and in case of the delay, the interest required to be determined applying the SBI base rate on the delayed outstanding amount. The ld. DR further submitted that the issue is covered in favour of the Revenue by the decision of the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on outstanding receivables beyond credit period of 30 days. However, the TPO has asked the assessee to furnish the details on or before 24.07.2021 which in our opinion is short. Therefore, in order to do justice to principles of natural justice the TPO is directed to give another opportunity to the assessee to explain and furnish its objections on this issue. The TPO should consider the details of invoice and charge interest @ SBI short term deposit rate on outstanding receivables beyond the credit period as per intercompany agreement or as per invoice. If no credit period is mentioned in the intercompany agreement or invoice the TPO may consider 30 days as credit period. The TPO may also examine the veracity of the contention of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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