2025 (8) TMI 145

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... ITBA/APL/S/250/2022-23/1050616281(1) and relates to Assessment Years 2012-13, 2014-15 and 2016-17. 2. Since, common issues are involved in these appeals, we deciding these appeals by way of this consolidated order. We are taking Asst. Year 2012-13 as a lead year and discussing the facts of this case. 3. The assessee is a company and engaged in the business of processing and trading of rice and pulses and food products. The assessee has two subsidiary companies, one in USA and one in UK. For the year under consideration, the assessee has filed its return of income declaring an income of Rs. 1,64,48,495/- on 30th November, 2012. The case of the assessee was thereafter selected for scrutiny and the matter was referred to the TPO on acco....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o far as the issue related to the addition of notional interest vis-à-vis loan advance to the AEs. The CIT(A) is justified in directing the AO to apply LIBOR rate and hence, assessee does not want to agitate further about this ground. 7. Ld. DR relied upon the orders of authorities below. 8. After considering the submissions, we observed that Ld. CIT(A) has noted that during the year under consideration, the assessee has advanced the loan of Rs. 1570.29 lacs to its AE. While computing the arm's length price of this transaction, the TPO had applied LIBOR+ 500 basis point for computing notional interest of attributable to this transaction. The Ld. CIT(A), however, restricted the adjustment only to the LIBOR rate. We do not find a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with NON AEs, the same chart reproduced herein for the sake of convenience. DETAIL OF SALES UPTO 31.03.2012 PARTICULARS AMOUNT EXPORT SALES-A.E   KFL INC. 29.17,03,834.00 INDO EUROPEAN 89,11,95,017.00 RICH RICE 92,95,10,598,00   2,11,24,09,449.00 EXPORT SALES-NON-A.E 3,50,51,48,916.00 TOTAL DOMESTIC SALES 5,61,75,58,365.00   3,98,16,68,371.47 TOTAL SALES AS PER Balance Sheet 9,59,92,26,736.47 13. Perusal of the above chart would show that the assessee had made substantial sales to Non- AE's also from which the assessee has not charged any interest on receivables. It is settled position of law that if no interest has been charged from Non AEs then no adjustment....