9911796707
TMI Blog2024 (9) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... ] that revenue authorities could not sit in the Arm Chair of the an assessee, when it comes to the business decisions to be taken by an assessee in the interest of business. Thus we direct the AO to delete the addition. Regional support services provided by the assessee - assessee has filed certain additional evidences to rebut the observations made by the DRP - HELD THAT:- After considering the rival submissions, we are of the view that one more opportunity shall be granted to the assessee in the interest of justice to prove his case in respect of regional support services. Therefore, this ground of appeal(number 3) is allowed for statistical purposes. Interest on receivables - We are of the view that the for bench marking the loan transactions rate of LIBOR + 200 points is correct adjustment, in view of the recent decision of this Tribunal in the case of S P Capital (IQ) [ 2024 (9) TMI 1372 - ITAT HYDERABAD] we direct the AO to apply LIBOR + 200 points in this set of transaction. We also observe that the assessee had not disputed the interest receivable transaction as international transaction per se. Therefore, we affirm the view of the Ld. DRP wherein it was held that the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 38,71,38,819/-. The same was processed u/s. 143(1) of the Income Tax Act, 1961 ( the Act ) and thereafter the case of the assessee was selected for scrutiny. Since there was international transaction entered into by the assessee the Assessing Officer made a reference to the Transfer Pricing Officer ( TPO ) for determining the Arm s Length Price ( ALP ) of the international transaction vide reference dt. 29.09.2019. Accordingly, the TPO conducted the TP Study and computed the ALP after making below mentioned adjustments vide order dt. 29.01.2020. Aggrieved with the order of TPO, the assessee filed its objections before the Learned Dispute Resolution Panel ( Ld. DRP ) and contended that the TPO has erred in making following adjustments: Technical support services Rs. 5,54,59,189/- Regional support services Rs. 1,27,31,520/- Interest paid to AE Rs. 74,87,056/- Interest on delayed receivables Rs. 12,23,461.35 Total adjustment Rs. 7,69,01,226/- The Ld. DRP vide its order dt. 25.05.2021 partly allowed the claim of the assessee and hence restricted the adjustment to the tune of Rs. 1,62,50,970/-. 3. Aggrieved with the order of Ld. DRP, the assessee preferred appeal before us and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of technical services received from the Associated Enterprise (AE). The assessee explained that these services were received for the purpose of project bidding. However, the assessee could not be able to fetch that project for which the biddings were made and hence the TPO as well as Ld. DRP took a view of the assessee failed to derive any benefit from the technical services and hence the expenses attributable to these bids are not allowable to the assessee. The learned counsel for the assessee contended that it is settled principle of law that genuineness and necessity of the expenses on account commercial expediency is to be seen, irrespective of the fact that whether such expenses has provided any benefit or not. The learned counsel for the assessee further argued that the TPO cannot sit in the armchair of the assessee for taking the business decisions. 6. On behalf of the revenue, the Ld. DR relied upon the orders of authorities below. 7. We have considered the rival submissions and perused the material available on record. We observe that so far as the receipt of services by the assessee from its AE, vis- -vis the project bidding is concerned, there is no quarrel betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee relied upon the decisions of co-ordinate bench and contended that LIBOR +200 points may kindly be made in view the recent judgments of the Coordinate Benches( referred in finding portion) 15. After considering the rival submissions, we are of the view that the for bench marking the loan transactions rate of LIBOR + 200 points is correct adjustment, in view of the recent decision of this Tribunal in the case of S P Capital (IQ) in ITA No.2215/Hyd/2018 dt.7.8.2024, we direct the Assessing Officer to apply LIBOR + 200 points in this set of transaction. We also observe that the assessee had not disputed the interest receivable transaction as international transaction per se. Therefore, we affirm the view of the Ld. DRP wherein it was held that the impugned transaction is of international transaction and has to be computed having regard to the ALP. 16. Ground number 4-6 are allowed in above terms- 17. The next ground related to the issue of taxability of interest income of Rs. 1,59,016/-. It is the case of the TPO that the assessee could not be able to reconcile the mismatch between the 26AS reflecting interest income as well as the profit and loss account showing inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
