2024 (7) TMI 721

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.... : Shri Zafrul Haque Tanweer, CIT DR ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of the Assessing Officer dated 28.01.2022 pursuant to the directions issued by the ld. DRP for the Assessment Year 2017-18. 2. Grounds of appeal taken by the assessee read as under :- "1. The Learned Assessing Officer 1 Transfer Prici....

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....and re-characterising the outstanding receivables as loan advanced to AE by the Assessee; 1.2 disregarding judicial pronouncements in India in undertaking the TP adjustments. 2. Without prejudice to the above grounds of appeal, the Ld. AO has erred in not giving effect to the directions of Hon'ble DRP by not considering "net receivables" for the purposes of computing transfer....

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....eceivables amounting to INR 50,34,22,761 from its AEs and that the same had not been mentioned in Form 3CEB and had also not been benchmarked in the TP study. As no reply was received from the assessee on the above in TP proceedings, the TPO treated the delayed payments as unsecured loans advanced to the AEs and proposed to charge interest rate of 9.175% on the basis of prevailing average SBI Base....

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....receivables are denominated in foreign currency. If it is found that the invoices are raised in foreign currency, the applicable rate shall be LIBOR plus as per the credit rate of the ASSESSEE, in line with judgment of the Hon'ble Delhi High Court in the case of M/s. Cotton Naturals. 4.5 As regards the period of the delay to be considered for charging interest on receivables, DRP has held....