2025 (5) TMI 874

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....In the said MA, assessee has stated that grounds of appeal No. 4 and sub grounds taken in the appeal memo were not adjudicated. Accordingly, the MA filed by the assessee bearing No. 384/Del/2018 was allowed vide order dt. 27.04.2023, wherein the order in ITA No. 6571/Del/2016 is recalled for limited purpose of adjudicating Ground of appeal Nos. 4 and sub grounds. 2. In view of above facts, we proceed to decide grounds of appeal No. 4 and sub grounds taken by the assessee. Before us, vide letter dt. 28.02.2025, the assessee has raised certain additional grounds of appeal. The grounds of appeal originally taken and the additional grounds of appeal now raised are as under: "4. That the ld.AO pursuant to the directions of the Hon&#3....

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....n law, DRP/TPO have erred in ignoring that the associated enterprises ("AE") of the Appellant provide a longer credit period as compared to period allowed by Appellant." 3. It is requested by the ld. AR that the additional grounds of appeal are purely legal in nature and requires no fresh investigation therefore, the same may kindly be admitted and adjudicated on merits. He further placed reliance on the judgements of Hon'ble Supreme court in the case of NTPC Ltd Vs. CIT, reported in (1998) 229 ITR 383 and Jute Corporation of India Vs. CIT (1990) 187 ITR 688. 4. After perusing the additional grounds of appeal, we find that these additional grounds are related to the issue challenged in ground of appeal No.4. Thus, by considering the d....

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....submitted that value of outstanding receivables from AE's are less than the value of outstanding payable to AE and if the approach of charging interest on overdue receivables and paying interest on overdue payables is considered, the assessee would save interest on net outstanding balance towards its AEs. In last it is argued that assessee allowed 30 credit period to its AE's whereas the AE's allowed credit period of 45 days on the outstanding payables. He, therefore, prayed to delete the addition made on this account. 8. On the other hand, the ld. Sr. DR strongly supported the findings of the TPO and ld. DRP. It was the submission of the Ld. Sr. DR that the amendment brought in the Act with retrospective effect from 1-4-2002 and incepti....

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....ible property, including the transfer of ownership or the provision of use of rights regarding land use, copyrights, patents, trademarks, licences, franchises, customer list, marketing channel, brand, commercial secret, know-how, industrial property right, exterior design or practical and new design or any other business or commercial rights of similar nature; (c) capital financing, including any type of long-term or short-term borrowing, lending or guarantee, purchase or sale of marketable securities or any type of advance, payments or deferred payment or receivable or any other debt arising during the course of business; 10. The above explanation clarifies and justifies the adjustment made by the TPO towards interest on receiv....