2024 (10) TMI 239

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.... brief facts of the case are that the assessee company M/s. ADP Private Limited with PAN of AANCA8983A is engaged in the business of providing Computer Software Development Services and Information Technology Enabled Services to its Associated Enterprises. It filed its Return of Income for the A.Y. 2017-18 on 30.11.2017 declaring an income of Rs. 2,04,05,28,870/- under normal provisions and book profits at Rs. 1,89,51,96,598/- u/s 115JB. The case was selected for scrutiny and notice u/s 143(2) dated 27.09.2019 was issued and served on assessee electronically. Subsequently, notices u/s 142(1) were issued, calling for information electronically. In response, Assessee Company submitted the information electronically. After verification of the ....

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....nt of Hon'ble Rajasthan High Court in the case of CIT Vs. Vaibhav Jain reported in 88 taxman.com 12 (copy of the same is furnished in the paper book at page No. 798). 6. The Ld. DR appearing for revenue and requested the LIBOR +200 points may kindly be applied in view of the consistent stand taken by the co-ordinate bench in these types of circumstances. 7. After considering the rival submissions, we observe that LIBOR is a rate applicable in the transactions entered into between banks and the loans advanced by these banks are secured by securities. However, in the case of assessee, the transaction is between the assessee and its AE and that too for delayed recoveries i.e. beyond the period agreed for credit. Further a reference can b....

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....e to prove before the AO that it has taken over all the assets and liabilities of the amalgamated company. The learned counsel for the assessee pointed out that the appointed date of amalgamation as per the order of the authorities is 15.06.2015 and hence all the liabilities and assets of the amalgamated company stands merged with that of the assessee company and therefore the credit of Rs. 2,88,45,702/- attributable to the erstwhile company may kindly be allowed. The learned counsel for the assessee, further drawn our attention to the order of Ld. CIT(A) for Assessment Year 2016-17 wherein the Ld. CIT(A) has given same direction with respect to the granting of TDS credit. The observations of the Ld. CIT(A) are reproduced hereunder : ....