ACIT CENTRAL CIRCLE-5(1), HYDERABAD vs. QUISLEX LEGAL SERVICES PRIVATE LIMITED, HYDERABAD

CORRIGENDUM We find that there is a mistake apparent on record with regard to the reasoning portion at para 12 of the order dt.26.12.2022. Therefore, suo motu, the following correction is made in para 12 of the order and the same may be read as under:-

“12. In our considered opinion, the view taken by the ld.CIT(A) is resonant with the view taken by the Bangalore Tribunal. Further, we found that the ld.CIT(A) has restricted the charging of interest at LIBOR +200 basis points allowing the credit period of 60 days. This view of the ld.CIT(A) is in accordance with law. Though, the ld.AR cited the decision in the case of OSI System Pvt. Ltd. Vs. CIT in in our view, the said decision is not applicable to the facts of the case as the Tribunal in the said case had held applicability of LIBOR +200 basis points to be applied on the trade receivables (Para 6.6). Similarly, the Tribunal without assigning any reason has held that 120 days credit period is reasonable period. In our view, no documentary evidence has been brought on record before us so that we can infer that 120 days credit period is a reasonable period. In our view, the approach of ld.CIT(A) cannot be faulted with. Hence, we direct the TPO / Assessing Officer to charge interest at LIBOR + 200 points. Further, we direct the Assessing Officer / TPO to allow the credit period and charge interest over and above the outstanding period of 60 days.