9911796707
TMI Blog2022 (3) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... see has advanced further amounts on various dates. Hence, in our view, the TPO should have computed interest on time basis. Accordingly he was not justified in computing interest for the entire year on the closing balance. Accordingly, while upholding the view of TPO that transfer pricing adjustment is required to be made on the loan given to the AE, we restore this issue to the file of AO/TPO for re-computing interest on time basis. Appeal filed by the assessee is treated as partly allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... Mediaid Inc. and accordingly paid Rs.3,48,17,228/- towards services so received. Since the assessee did not provide any document to prove receipt of services, the TPO determined the ALP at Nil and accordingly made transfer pricing adjustment of entire amount of Rs.3,48,17,228/-. The Ld DRP also confirmed the same. 4. The Ld. A.R. submitted that the assessee has capitalized the payment of Rs.3,48,17,228/- as its intangible asset in the books of accounts. Accordingly, he submitted that the above said amount was not claimed as expenditure. Accordingly he submitted that the above said payment will not affect the profits of the assessee and hence no TP adjustment is called. 5. On the contrary, the Ld. D.R. submitted that the TPO has determined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by the assessee has been determined as nil by the TPO. Since the relevant details are not readily available, we restore this issue to the file of AO with the direction to disallow the depreciation, if the assessee has claimed depreciation on the intangible asset of Rs.3,48,17,227/-. 8. The facts relating to the second item are that the assessee has given loan to its A.E named M/s. Eurocore. The assessee did not charge any interest on the above said loan given to its AE. Hence, the TPO adopted average of prime lending rate prescribed by the State Bank of India during the financial year under consideration, which worked out to 11.375%. Applying the said rate, the TPO made TP adjustment of Rs.94,27,093/-. The Ld. DRP also confirmed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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