2024 (9) TMI 1516

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....leading to the filing of present appeal are that the assessee company filed its return of income for the impugned assessment year on 30.11.2017 declaring a loss of Rs. 38,71,38,819/-. The same was processed u/s. 143(1) of the Income Tax Act, 1961 ("the Act") and thereafter the case of the assessee was selected for scrutiny. Since there was international transaction entered into by the assessee the Assessing Officer made a reference to the Transfer Pricing Officer ("TPO") for determining the Arm's Length Price ("ALP") of the international transaction vide reference dt. 29.09.2019. Accordingly, the TPO conducted the TP Study and computed the ALP after making below mentioned adjustments vide order dt. 29.01.2020. Aggrieved with the order of TP....

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....ating the outstanding receivables from its Associated Enterprises as separate international transaction. 5. The Ld. AO/Hon'ble DRP erred in not considering the fact that the Assessee does not charge interest from its non-AE customers for delay in realisation of invoices and therefore computation of notional interest on outstanding receivables from Associated Entities is not warranted. 6. Without prejudice to the grounds of appeal no. 4 and 5, the Ld. AO/ Hon'ble DRP erred in adopting SBI's short-term deposit interest rates for computation of notional interest on outstanding receivables denominated in foreign currencies. 7. The Ld. AO/Hon'ble DRP erred in law and on facts in making an addition of IN....

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....es on account commercial expediency is to be seen, irrespective of the fact that whether such expenses has provided any benefit or not. The learned counsel for the assessee further argued that the TPO cannot sit in the armchair of the assessee for taking the business decisions. 6. On behalf of the revenue, the Ld. DR relied upon the orders of authorities below. 7. We have considered the rival submissions and perused the material available on record. We observe that so far as the receipt of services by the assessee from its AE, vis-à-vis the project bidding is concerned, there is no quarrel between the assessee and the Department. However, the main averment of the Department is that the assessee failed to derive any benefit from....

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....the interest of justice to prove his case in respect of regional support services. Therefore, this ground of appeal(number 3) is allowed for statistical purposes. 12. Ground Nos.4 to 6 relates to interest on receivables amounting to Rs. 1,95,030/-. The facts regarding this issue are that the assessee has borrowed loan from its AE MW Singapore. The assessee has paid interest in Indian currency and hence the assessee paid the adjustment of LIBOR +200 points may kindly be granted to the assessee and the observation of the TPO may kindly be nullified. 13. Before Ld. DRP, the assessee has filed one agreement of loan in support of its contention. However, the Ld. DRP after obtaining the remand report from the TPO has directed the TPO to ado....

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....hence they paid interest on the advance given to the assessee. 18. The learned counsel for the assessee for the assessee has drawn the attention of the bench towards reconciliation of assessee and Jackson Limited and prayed that the matter may be remitted to the Assessing Officer/TPO for fresh adjudication. 19. Per contra, the Ld. DR relied upon the orders of authorities below. 18. After considering the rival submissions, we remit this issue to the file of TPO for examining afresh in the light of the new facts brought on record before the bench and decide the issue accordingly. 20. Ground No.8 is related to the loans and advances given to employees by the assessee and later written off by the assessee amounting to Rs. 10,95,202/....