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TMI Blog2022 (8) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, we deem it proper to remit the issue to the file of AO/TPO for determining the ALP with regard to interest on delayed receivables by following the Rules with a proper benchmarking study. AO/TPO is also directed to rectify the mistakes done in computation of interest raised by the assessee - Appeal by the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... vy on the delayed receivables. The DRP gave directions to the TPO to recompute that interest adjustment after verifying the computational mistakes pointed out by the assessee. The TPO while passing the order giving effect to the directions of the DRP did not consider the computational mistakes. Further the TPO has erroneously considered the payable to the AE as receivable due to which the TP adjustment was enhanced to Rs.69,07,390 towards interest on delayed receivables. The AO passed the final assessment order accordingly. Aggrieved, the assessee is in appeal before the Tribunal. 4. The assessee has raised 18 grounds with regard to the ALP adjustment in respect of "Interest on Outstanding Receivables". Ground Nos. 1 & 2 are gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectify the computational error in the adjustment proposed - Gr. No. 4 (e) The adjustment of Rs 47,86,977 shown in the draft assessment order has been enhanced to Rs 69,01,390 without any basis - Gr. No. 5. 5. The ld. AR submitted that the assessee is not disputing the view taken by the AO/TPO that the delayed receivable is an international transaction. He submitted that once it is considered to be international transaction, then it is imperative for the TPO to determine the ALP under one of the prescribed methods. The ld. AR further submitted that the TPO has not carried out any benchmarking analysis as per rules, but simply adopted 6 months LIBOR + 400 basis points which is against the TP provision. He also highlighted that the AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TPO. 6. Having heard the rival submissions of the parties, we are of the considered view that there is merit in the contentions raised by the ld. AR. As rightly submitted by the ld. AR, the ALP of the international transactions have to be determined by following one of the prescribed methods under the I.T. Rules. Admittedly, the TPO/DRP in the instant case has not followed the same. Accordingly, we deem it proper to remit the issue to the file of AO/TPO for determining the ALP with regard to interest on delayed receivables by following the Rules with a proper benchmarking study. The AO/TPO is also directed to rectify the mistakes done in computation of interest raised by the assessee. Needless to say that the assessee may be given a reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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