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TMI Blog2022 (12) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... DER PER B.R. BASKARAN, ACCOUNTANT MEMBER: The assessee has filed this appeal challenging the assessment order dated 30.4.2021 passed by the A.O. for assessment year 2016-17 u/s 143(3) r.w.s. 144C(13) of the Income-tax Act,1961 ['the Act' for short] in pursuance of directions given by Ld. Dispute Resolution Panel ("DRP"). The only issue urged in this appeal relates to transfer pricing ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest rate at LIBOR-6Months+450 basis points applicable for financial year 2015-16, which worked out to 4.985%. Accordingly, he computed the interest on delayed receivables at Rs.1,17,60,075/- and proposed it as transfer pricing adjustment. The Ld. DRP also held that the delayed receivable is a separate international transaction. However, the Ld. DRP directed the AO/TPO to adopt short term depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer pricing provisions. He further submitted that the Ld DRP has directed the TPO to adopt short term lending rate prescribed by State Bank of India and accordingly Ld DRP has also not followed the rules. In effect, both the tax authorities have not bench marked the transaction in accordance with the Rules. He further submitted that the assessee has received advances from the AE in some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in the instant case, has not followed the same. Accordingly, we deem it proper to restore this issue to the file of AO/TPO for determining the ALP, i.e., interest on delayed receivables by following the rules. The assessee is free to raise all the contentions before the AO/TPO. 5. Other grounds urged by the assessee are only consequential in nature. 6. In the result, the appeal filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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