TaxTMI 
TaxTMI 
2017 (11) TMI 178
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....nts of which are as under: "The Hon'ble Members Hon'ble Income Tax Appellate Tribunal - 'B' Bench Hyderabad Dear Sir, Name of the Assessee: Epam Systems India Private Limited (Earlier known as Alliance Global Services IT India Private Limited) ['Epam India' or 'Appellant" or 'We'] Subject : Filing of Revised Grounds of Appeal Ref : ITA No: 192/Hyd/2017 Assessment Year : 2012-13 PAN : AAACW2012R We refer to the above appeal which has been fixed for hearing on July 25, 2017 before the Hon'ble 'B' Bench of the Income-tax Appellate Tribunal, Hyderabad. The Appellant humbly submits that, the Transfer Pricing Officer ('TPO')/ Assessing Officer ('AO') had err....
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....Assessing Officer/Transfer Pricing Officer (Ld.AO/TPO') erred in making an adjustment of Rs. 46,86,925 to the total income of the Appellant in respect of notional interest on delay in collection of dues from Associated Enterprise CAE') 2. Without prejudice to Ground 1, the Hon'ble Dispute Resolution Panel (DRP')/Ld.AO/TPO erred in ignoring that, if at all transfer pricing adjustment has to be sustained with respect to notional interest on overdue receivables, it has to be made at a LIBOR rate and not at short term fixed deposits as determined by the Ld. AO / TPO. 3. On the facts and in circumstances of the case and in law, the Ld. AO erred in levying interest u/s. 234B, 234 C and 234D of the Act The grounds mentione....
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....d after allowing the working capital adjustment, he found that the average margin of the comparables is within +/- 5% of the price received. He therefore, proposed no adjustment as far as software development services transaction is concerned. 4. Thereafter, he observed that the assessee is due to receive a sum of Rs. 25,54,91,654 at the end of the relevant A.Y. He therefore, asked the assessee to submit the details of the invoices and the subsequent receipts. On perusal of the information so filed, he observed that a sum of Rs. 21,96,43,078 has been received after considerable delay. He therefore, proposed to charge interest @ 14.75% on the delayed receipts after allowing the grace period of one month. The assessee submitted the relevant ....
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....ore us. He further submitted that the maximum credit period allowed by the assessee was 153 days, whereas the RBI allows six months to one year for the funds to be brought into India. Therefore, according to him, a period of 180 days is a reasonable period within which the assessee can bring the funds into India. 6. Further, without prejudice to the above contention, he submitted that the interest on the receivables is to be calculated at the LIBOR+ 300 basis points and not as per the interest rates prevailing in India as directed by the DRP. 7. The learned DR, on the other hand, supported the orders of the authorities below and submitted that there was considerable delay in receipt of the consideration by the assessee from its AEs and th....
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....at the end of the year and noticing that a sum of Rs. 21,96,43,078 has been received after a considerable delay, proposed to charge interest thereon. He accordingly charged interest @ 14.75% p.a on the outstanding receivables. This, in the opinion of the Counsel for the assessee, is not warranted as this already got factored in the working capital adjustment allowed by the TPO. We have gone through the TP study of the assessee and also the TP order of the TPO. Though the AO has stated that the working capital adjustment is allowed, the working of such adjustment is not available on record and it is not evident that the margins of the assessee and the comparables are arrived at after such adjustment. The decisions relied upon by the learned ....