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TMI Blog2025 (1) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... Dispute Resolution Panel, Bangalore [ld. DRP] dated 24.6.2024 in draft assessment order passed u/s. 143(3) r.w.s. 144C(13) of the Income-tax Act, 1961 (the Act) raising the following grounds of appeal:- "Based on the facts and circumstances of the case and in law, Concur Technologies (India) Private Limited (hereinafter referred to as the "Appellant"), respectfully craves leave to prefer an appeal against the order passed by the Assessment Unit (hereinafter referred to as the "learned AO"). dated 3 August 2024 for the Assessment Year ("AY") 2020-21, under section 143(3) of the Income-tax Act, 1961 (''the Act) to the order giving effect passed dated 8 July 2024 under section 143(3) read with 144C(13) pursuant to the directions issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 1'P study report. The learned AO/ TPO has also erred in law and facts by treating outstanding receivables as a separate international transaction as per provisions of section 92B of the Act. 4. The learned AO/ TPO erred in law and facts by not granting working capital adjustment which was sought for and contended by the Appellant before the learned TPO. 5. Without prejudice to Appellant contentions that the outstanding receivables should not be treated as a separate international transaction, even where the learned AO/ TPO has alleged it to be separate international transaction, the learned AO/TPO erred in law and facts by only computing the interest on trade receivable from AE and not taking into consideration trade payables o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to one another. The Appellant craves leave to add, alter, amend; vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal, so as to enable the Honorable Income-tax Appellate Tribunal, to decide on the appeal in accordance with the law." 2. The brief facts of the case show that the assessee, Concur Technologies (India) Private Limited, is engaged in the provision of services to its Associated Enterprises (AEs) of IT-enabled Services [ITes] with respect to travel request, travel bookings and claims of expenses. The assessee filed its return of income on 1.1.2021 at a total income of Rs.36,12,59,340 which was picked up for scrutiny and one of the reasons for scrutiny was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P adjustment proposed of Rs.12,93,75,803. 6. The assessee preferred objections before the ld. DRP. Consequent to DRP directions, the adjustment made of Rs.11,15,98,670 was reduced to NIL in respect of business support services segment. The interest on delayed payment was upheld by the DRP in principle and the adjustment was retained at Rs.1,77,77,133 as per order passed by the ld. TPO/AO on 8.7.2024, pursuant to the direction of the DRP dated 3.7.2024. The direction dated 3.7.2024 is the order under Rule 13 of the DRP Rules which was passed on the original direction u/s. 144C(5) of the Act dated 3.6.2024. 7. Based on the above direction, the final assessment order u/s. 143(3) r.w.s. 144C(13) r.w.s. 144B of the Act was passed on 3.8.2024 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the outstanding receivable is considered as a separate international transaction of financing to AEs, then adoption of rate of 13.27% adopting SBI PLR rate by the ld. TPO is grossly unjust. He submits that invoices are prepared in Foreign Currency, therefore there cannot be applicability of SBI PLR. 11. The ld. DR vehemently submitted that overdue interest receivable beyond the agreed time period is a separate international transaction which cannot be subsumed in the normal transaction of sale because the amount is not collected by the AE during the agreed time period. It was submitted that it is a transaction of financing to AEs. Therefore, it should be benchmarked separately. The ld. AO/TPO has adopted rate of 13.27% correctly. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . TPO has computed the interest of trade receivable by applying the SBI PLR of 13.27%. With respect to the above rate adopted by the ld. TPO, it is interesting to read para 16.22 of the order of the ld. TPO. As per that para, it is specifically mentioned that in case invoices are raised in domestic currency, rate of interest is to be charged on the basis of SBI PLR prevailing during the FY 201920 i.e., 13.27% p.a. However, in case invoices have been raised in foreign currency, the interest rate proposed to be charged is on the basis of mark-up on prevailing LIBOR rate during the year. The ld. AR has placed before us copies of invoices at pages 370 to 409 of PB wherein we find that the invoices have been raised by assessee in foreign currenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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