9911796707
TMI Blog2024 (9) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee company filed its return of income for the impugned assessment year on 30.11.2017 declaring a loss of Rs. 38,71,38,819/-. The same was processed u/s. 143(1) of the Income Tax Act, 1961 ("the Act") and thereafter the case of the assessee was selected for scrutiny. Since there was international transaction entered into by the assessee the Assessing Officer made a reference to the Transfer Pricing Officer ("TPO") for determining the Arm's Length Price ("ALP") of the international transaction vide reference dt. 29.09.2019. Accordingly, the TPO conducted the TP Study and computed the ALP after making below mentioned adjustments vide order dt. 29.01.2020. Aggrieved with the order of TPO, the assessee filed its objections before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction. 5. The Ld. AO/Hon'ble DRP erred in not considering the fact that the Assessee does not charge interest from its non-AE customers for delay in realisation of invoices and therefore computation of notional interest on outstanding receivables from Associated Entities is not warranted. 6. Without prejudice to the grounds of appeal no. 4 and 5, the Ld. AO/ Hon'ble DRP erred in adopting SBI's short-term deposit interest rates for computation of notional interest on outstanding receivables denominated in foreign currencies. 7. The Ld. AO/Hon'ble DRP erred in law and on facts in making an addition of INR 1,59,016 as interest income where such income has already been offered to tax as operating income. 8. The Ld. AO/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the assessee further argued that the TPO cannot sit in the armchair of the assessee for taking the business decisions. 6. On behalf of the revenue, the Ld. DR relied upon the orders of authorities below. 7. We have considered the rival submissions and perused the material available on record. We observe that so far as the receipt of services by the assessee from its AE, vis-à-vis the project bidding is concerned, there is no quarrel between the assessee and the Department. However, the main averment of the Department is that the assessee failed to derive any benefit from these expenses. We find force in the argument of the learned counsel for the assessee that the TPO is not empowered to apply benefit test while computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates to interest on receivables amounting to Rs. 1,95,030/-. The facts regarding this issue are that the assessee has borrowed loan from its AE MW Singapore. The assessee has paid interest in Indian currency and hence the assessee paid the adjustment of LIBOR +200 points may kindly be granted to the assessee and the observation of the TPO may kindly be nullified. 13. Before Ld. DRP, the assessee has filed one agreement of loan in support of its contention. However, the Ld. DRP after obtaining the remand report from the TPO has directed the TPO to adopt LIBOR /SBI interest rate as PLR. 14. Before us, the learned counsel for the assessee relied upon the decisions of co-ordinate bench and contended that LIBOR +200 points may kindly be made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kson Limited and prayed that the matter may be remitted to the Assessing Officer/TPO for fresh adjudication. 19. Per contra, the Ld. DR relied upon the orders of authorities below. 18. After considering the rival submissions, we remit this issue to the file of TPO for examining afresh in the light of the new facts brought on record before the bench and decide the issue accordingly. 20. Ground No.8 is related to the loans and advances given to employees by the assessee and later written off by the assessee amounting to Rs. 10,95,202/-. Adverting to the facts in respect of this issue, learned counsel for the assessee fairly agreed that out of Rs. 10.95 Lakhs an amount Rs. 4,15,190/- has been wrongly debited to the profit and loss account a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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