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TMI Blog2018 (12) TMI 1930X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The solitary grievance of the assessee relates to the transfer pricing adjustment of Rs. 1.45 crores made by the Assessing Officer following the directions of the DRP by treating the receivables outstanding beyond 60 days from the associated enterprises [AEs] as deemed loan and charging notional interest on the basis of average State Bank of India base rate of 9.83% per annum plus 300 basis points. 3. The representatives of both the sides were heard at length, the case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules. Judicial decisions relied upon were carefully perused. 4. Briefly stated, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench marked the interest rate based on base rate of SBI taking the same at 9.83% to which 400 basis points were added and, accordingly, interest rate was arrived at 13.83%. The TPO proposed an upward adjustment of Rs. 2,48,13,810/- 8. The assessee raised objections before the DRP and the DRP issued directions dated 23.03.2018 upholding the action of the TPO for taking SBI PLR as CUP but directed to add 300 basis points to the same. The DRP further directed to take 60 days to be reasonable period beyond which interest must be charged on outstanding receivables. Following the directions of the DRP final addition was made at Rs. 1,45,27,731/-. 9. Aggrieved by this the assessee is before us. 10. It is the say of the ld. AR that interest on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in than the comparable companies (which have been accepted by the TPO) which more than compensates for the credit period extended to the AEs. Thus, the approach by the assessee of aggregating the international transactions pertaining to sale of goods to AE and receivables arising from such transactions which is undoubtedly inextricable connected is in accordance with established TP principles as well as ratio laid down by the Hon'ble jurisdictional High Court in the case of Sony Ericsson Mobile Communication India (P.) Ltd. (supra). For the aforesaid reasons, we allow the appeal of the assessee. It ordered accordingly." 13. This decision of the coordinate bench has been affirmed by the Hon'ble High Court of Delhi in ITA No. 765/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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