2023 (8) TMI 1439 - SCH - Income Tax

TP Adjustment - characterization of infra group services transaction - ITAT deleted the addition made holding that the payment made for intra group services was for commercial expediency - As decided by HC 2022 (9) TMI 1567 - DELHI HIGH COURT agreement between the Assessee and its AE was a composite one and could not be split up for the purposes of holding that some services are at arm s length and some are not as on viewing the agreement as a whole. It was not within the purview of the TPO to determine if some of the services resulted in any actual benefit to the Assessee or not. Not considering interest on outstanding receivables as an international transaction as per Section 92 (B) read with Section 92F(v) - Appellate Authorities below have accepted the contention of the assessee that the assessee was justified in not charging interest on the delayed payments by the AEs and in not levying any interest on delayed payments made by the non-AEs as the debtor days given to the non-AEs were more than the debtor days given to the AEs. HELD THAT - This Court is of the opinion that the impugned order does not call for interference. The special leave petition is accordingly dismissed. All pending applications are disposed of.

Summary

The Supreme Court of India dismissed the special leave petition as it found no reason to interfere with the impugned order. All pending applications were disposed of.