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TMI Blog2016 (6) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... he interest nor to pay the interest to its AEs, then, not only the parties or the dates on which the payment was receivable by the assessee is to be considered but the matter should be considered as a whole and the netting off of the interest payable and receivable be made - HELD THAT:- We find force in the above contention of the Ld. A.R. The matter is to be examined by the AO as a whole and if bench mark of 180 days is to be taken as the credit period without levy of interest then the AO should adopt the same criteria also in relation to the payments payable by the assessee to its AEs. Thereafter, the AO should do netting off of the interest payable and receivable and to make adjustments of the resultant amount of interest, if any, found, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en asked to explain as to why interest should not be disallowed on credit granted to AE beyond 180 days. The assessee explained as under: i. The assessee did not charge any interest on Exports Payments received after 180 days (overdue) from AE. ii. The assessee did not pay any interest to the AE on delayed Import payments made based on credit terms inspite of huge delay. iii. In respect of AE assessee submitted a) The assessee has 57 sale bills with AE during the year under consideration. b)There are 20 cases in which there is delay over 180 days c) Majority of the delays are due to delay in receipt of a very small portion out of full invoice value (delay in receipt of balance payment). iv. From the above it was stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mports to some party then, receiving delayed export realization cannot be said to be bearing interest as assessee is already owing much more amount to its AE on account of import payments. 6. We have gone through the said order of the Tribunal. The relevant part of the observation of the Tribunal for the sake of convenience is reproduced as under: 3.1 Before us it was pleaded by Ld. AR that assessee is neither charging interest f rom its AE and also not paying any interest to its AE. It was submitted that assessee also utilized credit in the shape of import payments to be made to its AE and these are listed at page 133 of the paper book. It was submitted that assessee did not make payment even for a period, more than exceeding 1000 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport made by i t then, to that extent interes t cannot be added as TP adjustment. We therefore, restore this matter to the file of AO with a direction to re-adjudicate this issue as per directions given above. For statistical purposes this ground is treated to be allowed. 7. The Ld. A.R. of the assessee has pleaded that there needs to be certain modifications in directions to be given to the AO in relation to the matter for the year under consideration vis- -vis the directions given by the Tribunal in the earlier assessment year 2008-09. She has pleaded that though the Tribunal in principle agreed that if the assessee has to make the payments of imports some party then, receiving delayed export realization cannot be said to be bearing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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