TaxTMI 
TaxTMI 
2023 (2) TMI 1105
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....d as under: "On the facts and circumstances of the case and in law, the Hon'ble DRP vide its directions dated 28 March 2019 grossly erred in upholding addition pertaining to interest on outstanding receivables made by the Learned AO to returned income of the Appellant vide draft assessment order dated 21 December 2018 passed under section 143(3) of the Act. Each of the ground is referred to separately, which may kindly be considered independent of each other and without prejudice to each other. That on the facts and circumstances of the case and in law, 1. The Learned AO/ TPO/ DRP have erred in making an addition of INR 21,231,519 to the total income of the Appellant due to adjustment in the arm's length price ("ALP") of the ....
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....it of INR 24,114,498/- has been given to the applicant instead of INR 24,258,487 as claimed in the return of income and appearing in Form 26AS for the year under consideration. 5. The Learned AO has grossly erred both in facts and in law in proposing to charge interest under section 234A, 234B and 234C of the Act. 6. The Learned AO has erred in initiating penalty under section 271(1)(c) of the Act. The Appellant craves leave to add, 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. The Appellant prays for appropriate relief based on the said grounds of appeal and the facts and circumstances of the case." 3. The representatives of both the sides we....
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....ase rate plus 300 basis points for computing interest on receivables instead of using LIBOR as the bench-mark interest rate. 8. Objections of the assessee were dismissed by the DRP. 9. Before us, the ld. counsel for the assessee, at the very outset, requested for admission of additional evidences. It is the say of the ld. counsel for the assessee that the assessee is engaged in the business of providing software consulting, systems design, enterprise application and computer programming services to its customers in India and outside India. 10. It is the say of the ld. counsel for the assessee that the assessee had submitted working capital adjusted margins of the comparable companies to account for impact of outstanding receivables and d....
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....espect to outstanding receivables from unrelated parties, in all fairness, this contention cannot be brushed aside lightly, though needs due verification by lower authorities. 15. We, therefore, restore this issue to the file of the TPO/Assessing Officer. The assessee is directed to furnish necessary documentary evidences to demonstrate that on outstanding receivables from unrelated parties, no interest was charged on similar transactions as that with AEs and the Assessing Officer/TPO is directed to examine the same and decide the issue afresh as per provisions of law. 16. Similar view was taken by the co-ordinate bench in the case of M/s LT Foods Ltd ITA Nos. 6221 and 6222/DEL/2012 for Assessment Years 2008-09 and 2009-10 order dated 11.....