2018 (3) TMI 1901

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....ohan Alankamony, J. This appeal by the assessee is directed against the order passed by the learned members of the Dispute Resolution Panel - 2, Bengaluru, dated 21.12.2016 for the assessment year 2012- 13 passed U/s.144C(4) of the Act. 2. The assessee has raised several grounds in its appeal however the crux of the issue is that the Ld.DRP has erred in applying Prime Lending Rates with respect ....

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....r scrutiny under CASS and notice U/s.143(2) of the Act was issued on 20.08.2013. Finally the assessment was completed U/s.143(3) r.w.s 92CA of the Act on 30.01.2017 wherein the Ld.TPO made upward adjustment on the income of the assessee to the tune of Rs. 3,50,23,483/- towards interest on overdue receivables based on prime lending rates. On appeal, the Ld. Members of the DRP confirmed the order of....

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.... submissions of the Ld.AR. Mumbai Bench of the Tribunal cited supra has held that were deemed notional interest has to be worked out in the case of funds receivable from AEs LIBOR rate would be most appropriate. The relevant portion of the order is reproduced herein below for reference: "14. From the record, we found that so called delay repatriation from foreign AE's, TPO/Assessing Officer, whi....

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....48) (2012) (Mumbai Tribunal) (iv) Tata Autocomp Systems Ltd Vs ACIT (ITA No 1320 of 2012) (Approved by Bombay High Court) (v) Four Soft Ltd Vs DCIT (142 TT J 358) (2011) (Hyderabad Tribunal) (vi) Everest Kanto Cylinder Ltd Vs ACIT (L TU) (ITA No 5501Mum12014) (Mumbai Tribunal) 15. In view of above discussion, computation of interest is restored back to the file of AO for recomputing the in....