TaxTMI 
TaxTMI 
2019 (1) TMI 1205
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....in law, the Appellant craves leave to prefer an appeal based on the following grounds of appeal against the Assessment Order passed by the Deputy Commissioner of Income Tax, Circle 2(1), Hyderabad (Ld. Assessing Officer) uls 143(3) LW.S 92CA(4) r.w.s 144C of the Act. The Assessee respectfully submits in this regard that, the learned Assessing Officer (" AO") I learned Transfer Pricing Officer ("TPO") and the Hon'ble Dispute Resolution Panel ('DRP') erred in: TRANSFER PRICING MATTERS - 1. Making TP adjustment amounting to Rs. 97,25,011/- by imputing Interest at 5% on outstanding receivables as on March 31st 2012 relating to sales of services to Associated Enterprise's (AE' s). a) Not ap....
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....ppeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal". 2. Brief facts of the case are that the assessee company engaged in the business of development of software and Information Technology Enabled Services (ITeS), filed its return of income for the A.Y 2012-13 on 28.11.2013 admitting total income of Rs. 28,81,88,380 under the normal provisions and an amount of Rs. 31,09,29,586 under the book profits u/s 115JB of the Act. During the assessment proceedings, the AO observed that the assessee has entered into international transactions with its AEs. Therefore, the determination of the ALP was referred to the TPO. The TPO found the international transactions for soft....
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....ia P ltd vs. ACIT in ITA Nos. 251 & 258/Hyd/2016 dated 8.6.2018 wherein the Tribunal by following the decision of the Coordinate Bench of the Tribunal at Bangalore in the case of Pegasystems Worldwide India (P) Ltd for the A.Y 2009-10 in ITA Nos.1758 & 1936/Hyd/2014, has held that notional interest on 'outstanding receivables' cannot be brought to tax. Further, he also relied upon the judgment of the Hon'ble Delhi High Court in the case of Kusum Healthcare Pvt Ltd vs. ACIT, in ITA No.6814/Del/2014 wherein the Hon'ble Delhi High Court has held that the interest on receivables is subsumed in the working capital adjustment. Therefore, according to the learned Counsel for the assessee, the 'interest on outstanding receivables' cannot be....
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....e foreign exchange into India and therefore, one year period is reasonable period. 8. Having regard to the rival contentions and the material on record, we find that by the Finance Act of 2012 an Explanatory note has been brought to book into the statute book w.e.f. 1.4.2002. The relevant transactions before us relate to the financial year 2011-12. Therefore, the assessee cannot be expected to consider such a transaction as an international transaction during the relevant previous year. This Tribunal, in a number of cases has held that such interest on receivables is not an international transaction prior to the amendment and for the sake of ready reference, relevant paragraph is reproduced hereunder: Para...38. Having regard to....
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....d DR in his written note.......................... 9. In the Micro Ink decision (Supra).......................... 10. Nullifying a judicial interpretation...................... 11. What has, however, been done in the case................ 12. Dealing with such a situation... Hon'ble Delhi High Court ..................... 13. Quite clearly, in view of the law so laid down............ 14. Legislature may describe..................................... 15. It is very important to bear in mind............................ 16. When this is put to the learned DR.......................... 17. Well, if the 2012 amendment does not add................ 18. It is ....