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TMI Blog2019 (1) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for the relevant A.Y. - Decided in favour of assessee. - ITA No.1403/Hyd/2016 - - - Dated:- 21-1-2019 - Smt. P. Madhavi Devi, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For The Assessee : Shri Ravi Bharadwaj For The Revenue : Shri YVST Sai, DR ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for the A.Y 2012-13 against the assessment order passed u/s 143(3) r.w.s. 92CA(4) r.w.s. 144C(13)of the Act, dated 23/08/2016. The assessee has raised the following grounds of appeal: Based on the facts and circumstances of the case and in law, the Appellant craves leave to prefer an appeal based on the following grounds of appeal against the Assessment Order passed by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that the receivables are due from AE's are in foreign currency and hence interest, if any, is to be imputed by benchmarking with the rates prevalent in the international market for foreign currency loans. (i.e. LIBOR plus ). f) Without prejudice to the above grounds, not restricting the levy of interest on outstanding receivable till the end of the relevant Financial Year. CORPORATE TAX ISSUES- 2. Computation of interest u/s 244A. 3. Levy of penalty u/s 271AA and 271BA The Appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal . 2. Brief facts of the case are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re us is 2011-12, when the interest on receivables was not part of the international transactions u/s 92B of the Act. He submitted that only subsequently, the amendment has been brought in with retrospective effect, by way of an explanatory note that the interest on outstanding receivables is an international transaction. He relied upon various case law in support of his contentions that interest on receivables cannot be treated as an international transaction. He also placed reliance upon the decision of the Coordinate Bench of this Tribunal in the case of Hexagon Capability Center India P ltd vs. ACIT in ITA Nos. 251 258/Hyd/2016 dated 8.6.2018 wherein the Tribunal by following the decision of the Coordinate Bench of the Tribunal at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levied on outstanding receivables. 7. The learned Counsel for the assessee, on the other hand, rebutted the argument of the learned DR stating that the amendment itself has been brought into the statute book in the financial year 2012-13 and the assessee cannot be expected to treat the transactions as international transactions without it being on the statute book. He further submitted that the AO has treated 30 days as reasonable credit period without any basis and relied upon the decisions of the Tribunal wherein it was held that even the RBI allows one year period to bring the foreign exchange into India and therefore, one year period is reasonable period. 8. Having regard to the rival contentions and the material on record, we fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rimarily a source of revenue, is applicable prospectively i.e. from the A.Y 2013-14 onwards. For the sake of clarity and ready reference, the relevant paras are reproduced hereunder: 6. While we will, in a shortwhile deal with .. . Decision of a Coordinate Bench in the case of Micro Ink vs ACIT (2016) 176 TTJ 8 (Ahd) wherein . 7. We are in considered agreement with the views so expressed 8. Learned DR in his written note .. 9. In the Micro Ink decision (Supra) .. 10. Nullifying a judicial interpretation . 11. What has, however, been done in the case . 12. Dealing with such a situation Hon'ble Delhi High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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