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“interest on outstanding receivables”

Transfer PricingSection 92BSection 92B244 judgments

The decision most relied on for interest on outstanding receivables is CIT v. EKL Appliances Ltd. (345 ITR 241), cited in 422 judgments on BharatTax.

Leading authorities on interest on outstanding receivables

CIT v. EKL Appliances Ltd.
345 ITR 241 · 2012 · High Court
422
citing judgments

Transfer pricing adjustments for outstanding receivables are permissible only if the Tax Officer establishes, through analysis over a period, a pattern indicating an international transaction intended to benefit an associated enterprise. The Tax Officer cannot question purely business decisions like royalty payments or exceed jurisdiction by applying cost-benefit analysis to determine the arm's length price of services.

CIT v. Cotton Naturals (I) (P.) Ltd.
55 Taxmann.com 523 · 2015 · High Court
273
citing judgments

The interest rate for benchmarking foreign currency loans advanced to Associated Enterprises should be the market-determined rate applicable to the currency of the loan, such as LIBOR for US Dollar loans, rather than a domestic lending rate like the Indian PLR.

Pr. CIT v. Kusum Health Care Pvt. Ltd.
398 ITR 66 · 2017 · High Court
100
citing judgments

Not every item of receivables appearing in the accounts of an entity dealing with foreign associated enterprises automatically constitutes an international transaction under Section 92B. A separate adjustment for interest on outstanding receivables is not permissible if the working capital adjustment has already factored in their impact.

CIT v. Patni Computer Systems Ltd.
215 Taxmann 108 · 2013 · High Court
92
citing judgments

The provision of an extended credit period or non-charging of interest on delayed receivables from associated enterprises constitutes an international transaction under Section 92B(1) and requires separate benchmarking at arm's length, even retrospectively due to the Finance Act, 2012 amendment.

Avenue Asia Advisors Pvt. Ltd. v. DCIT
398 ITR 120 · 2017 · High Court
84
citing judgments

The Delhi High Court holds that a detailed functional and working capital analysis, considering various factors, is essential before treating outstanding receivables as a separate international transaction for transfer pricing adjustments on notional interest. Simply making an adjustment based on receivables alone without such study distorts the transaction's character.

348 (Mum.); Tata Autocomp Systems Ltd. v. Asstt. CIT
21 Taxmann.com 6 · 2012 · ITAT
49
citing judgments

The use of LIBOR is upheld for benchmarking loans or advances given to foreign Associated Enterprises (AEs), and notional interest is to be computed using LIBOR rates for transfer pricing adjustments on amounts receivable from AEs.

Kusum Healthcare (P.) Ltd. v. Asstt. CIT
62 Taxmann.com 79 · 2015 · High Court
44
citing judgments

Interest cannot be separately charged on outstanding receivables from an associated enterprise if these receivables are an integral part of the underlying international transaction for which the arm's length price has already been determined. Such outstanding receivables are not considered a distinct international transaction.

CIT v. Indo American Jewellery Ltd.
44 Taxmann.com 310 · 2014 · High Court
42
citing judgments

A transfer pricing adjustment for notional interest on delayed receivables from an Associated Enterprise (AE) may not be warranted if the assessee consistently does not charge interest from both AEs and non-AEs.

Judgments citing interest on outstanding receivables

ACIT, Central Circle-1(2), Hyderabad vs. Aurobindo Pharma Limited, Hyderabad

In the result, appeal of the Revenue is dismissed and the appeal of the assessee is allowed in part

ITA 320/HYD/2023[2016-17]Status: DisposedITAT Hyderabad23 Jul 2024AY 2016-17

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdiaआ.अपी.सं / Ita No. 320/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2016-17) Acit, Central Circle 1(2) Vs. Aurobindo Pharma Ltd Hyderabad Hyderabad [Pan : Aabca7366H] आ.अपी.सं / Ita No. 351/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2016-17) Aurobindo Pharma Ltd Vs. Acit, Central Circle 1(2) Hyderabad Hyderabad Pan: Aabca7366H अपीलाथ" / Appellant "" यथ" / Respondent राज" व "ारा/Revenue By: Shri M Vijay Kumar, Cit(Dr) िनधा"रती "ारा/Assessee By: Advocate Bg Reddy

For Appellant: Advocate BG ReddyFor Respondent: Shri M Vijay Kumar, CIT(DR)
Section 35

07/10/2010, learned TPO thought it proper to consider the SBI short term deposit rate as appropriate CUP to determine the ALP of the interest on outstanding receivables. 14. Learned CIT(A) upheld the finding of the learned Assessing Officer and observed that post amendment by Finance Act, 2012 introducing explana ... assessee is fully funded by its AEs and does not bear any working capital risks; that the assessee does not charge any interest on outstanding receivables from third party customers as well; and that the assessee has outstanding payables due to AEs on which no interest has been levied

Cap Gemini Technology Services India Limited(Formerly Known As Igate Global Solution Limited)-M/S Patni Telecom Solutions Pvt Ltd, Changed Name to M/S.Igate Information Services Private Limited Merged With Igate Global Solutions Limited, Hyderabad vs. ITO, Ward - 2(1), Hyderabad

In the result, appeal raised by the assessee is dismissed

ITA 446/HYD/2015[2010-11]Status: DisposedITAT Hyderabad23 Jul 2024AY 2010-11

Bench: Shri Laliet Kumar & Shri Manjunatha, G.आ.अपी.सं /Ita No.446/Hyd/2015 (िनधा"रण वष"/Assessment Year: 2010-11) Cap Gemini Vs. Income Tax Officer Technology Services Ward 2(1) India Ltd(Formerly Igate Hyderabad Global Solutions Ltd) Hyderabad Pan:Aacca4255G (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Advocate A.V. Raghuram राज" व "ारा/Revenue By:: Shri Kumar Pranav, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 04/07/2024 घोषणा की तारीख/Pronouncement: 23/07/2024 आदेश/Order

For Appellant: Advocate A.V. RaghuramFor Respondent: : Shri Kumar Pranav, CIT(DR)
Section 10ASection 143(3)Section 92C(2)

decided the issue in favour of the Revenue and held that the SBI rate of 6% would be reasonable rate for benchmarking interest on outstanding receivables. Page 14 of 17 ITA No 446 of 2015 CAP GEMINI TECHNOLOGY SERVICES INDIA LTD 31. We have heard the rival arguments and perused

Macromill Research India LLP (Formerly Market Tools Research P. Ltd., Hyderabad vs. ACIT, Cirlce-16(2), Hyderabad

ITA 501/HYD/2016[2011-12]Status: DisposedITAT Hyderabad22 Jul 2024AY 2011-12

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri Darpan Kirpalani, C.AFor Respondent: Shri Kumar Pranav
Section 234BSection 271Section 271ASection 271BSection 40Section 92C(2)

risk differences between the international transaction of the Appellant and the comparable transactions in accordance with the provisions of Rule 1OB(1)(e); Interest on Outstanding Receivables 8. Making adjustment on the consideration receivable in respect of ITES exports to AE, without appreciating the fact that the price ... same is subsumed in the mark-up determined for provision of ITES. 9. Incorrect computation of notional interest on outstanding receivables. Corporate Tax Matters 10. Disallowing the amount of Rs 9,70,000 u/s 40(a)(ia) without appreciating the fact that no TDS was deductible on such expenditure

ACIT, Cirlce-5 (1), Hyderabad vs. Market Tools Research Private Limited, Hyderabad

ITA 424/HYD/2016[2011-12]Status: HeardITAT Hyderabad22 Jul 2024AY 2011-12

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri Darpan Kirpalani, C.AFor Respondent: Shri Kumar Pranav
Section 234BSection 271Section 271ASection 271BSection 40Section 92C(2)

risk differences between the international transaction of the Appellant and the comparable transactions in accordance with the provisions of Rule 1OB(1)(e); Interest on Outstanding Receivables 8. Making adjustment on the consideration receivable in respect of ITES exports to AE, without appreciating the fact that the price ... same is subsumed in the mark-up determined for provision of ITES. 9. Incorrect computation of notional interest on outstanding receivables. Corporate Tax Matters 10. Disallowing the amount of Rs 9,70,000 u/s 40(a)(ia) without appreciating the fact that no TDS was deductible on such expenditure

ACIT., Circle-5(1), Hyderabad vs. Market Tools & Research Private Limited, Hyderabad

ITA 1935/HYD/2014[2010-11]Status: HeardITAT Hyderabad22 Jul 2024AY 2010-11

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri Darpan Kirpalani, C.AFor Respondent: Shri Kumar Pranav
Section 234BSection 271Section 271ASection 271BSection 40Section 92C(2)

risk differences between the international transaction of the Appellant and the comparable transactions in accordance with the provisions of Rule 1OB(1)(e); Interest on Outstanding Receivables 8. Making adjustment on the consideration receivable in respect of ITES exports to AE, without appreciating the fact that the price ... same is subsumed in the mark-up determined for provision of ITES. 9. Incorrect computation of notional interest on outstanding receivables. Corporate Tax Matters 10. Disallowing the amount of Rs 9,70,000 u/s 40(a)(ia) without appreciating the fact that no TDS was deductible on such expenditure

Macromill Research India LLP (Formerly Market Tools Research Private Limited), Hyderabad vs. ACIT., Circle-16(2), Hyderabad

ITA 1866/HYD/2014[2010-11]Status: DisposedITAT Hyderabad22 Jul 2024AY 2010-11

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri Darpan Kirpalani, C.AFor Respondent: Shri Kumar Pranav
Section 234BSection 271Section 271ASection 271BSection 40Section 92C(2)

risk differences between the international transaction of the Appellant and the comparable transactions in accordance with the provisions of Rule 1OB(1)(e); Interest on Outstanding Receivables 8. Making adjustment on the consideration receivable in respect of ITES exports to AE, without appreciating the fact that the price ... same is subsumed in the mark-up determined for provision of ITES. 9. Incorrect computation of notional interest on outstanding receivables. Corporate Tax Matters 10. Disallowing the amount of Rs 9,70,000 u/s 40(a)(ia) without appreciating the fact that no TDS was deductible on such expenditure

Azingo Soft Systems (India) Pvt.Ltd., Hyd, Secunderabad vs. DCIT, Circle-1(1), Hyderabad

In the result, the grounds of the assessee are allowed for statistical purposes

ITA 460/HYD/2015[2010-11]Status: DisposedITAT Hyderabad16 Jul 2024AY 2010-11

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri S. Rama Rao, AR
Section 143(3)Section 144C(8)Section 92C

/DRP erred in rejecting the use of multiple year data and using data for the FY 2009-10 only. Interest on outstanding receivables from associated enterprise ('AE') 14. That on the facts and circumstances of the case and in law, the AO/DRP erred in considering 'outstanding receivables' as an international ... transaction for the Assessment Year under consideration and thereby making adjustment on account of notional interest on outstanding receivables. 15. That on the facts and circumstances of the case and in law, the AO/DRP erred in making adjustment in relation to the outstanding receivables from AEs disregarding the fact that

DCIT, Circle-1(1), Hyderabad vs. Azingo Soft Systems India Pvt. Ltd., Hyd, Hyderabad

In the result, the grounds of the assessee are allowed for statistical purposes

ITA 331/HYD/2015[2010-11]Status: DisposedITAT Hyderabad16 Jul 2024AY 2010-11

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri S. Rama Rao, AR
Section 143(3)Section 144C(8)Section 92C

/DRP erred in rejecting the use of multiple year data and using data for the FY 2009-10 only. Interest on outstanding receivables from associated enterprise ('AE') 14. That on the facts and circumstances of the case and in law, the AO/DRP erred in considering 'outstanding receivables' as an international ... transaction for the Assessment Year under consideration and thereby making adjustment on account of notional interest on outstanding receivables. 15. That on the facts and circumstances of the case and in law, the AO/DRP erred in making adjustment in relation to the outstanding receivables from AEs disregarding the fact that

Tek Systems Global Services Private Limited, Hyderbad vs. DCIT, Circle-2(1), Hyderbad

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 487/HYD/2022[2018-19]Status: DisposedITAT Hyderabad05 Jul 2024AY 2018-19

Bench: Shri Laliet Kumar & Shri Manjunatha G.आ.अपी.सं /Ita No.487/Hyd/2022 (निर्धारण वर्ा/Assessment Year: 2018-19) Tek Systems Global Vs. Dy. C. I. T. Services (P) Ltd, Circle 2(1) Hyderabad Hyderabad Pan:Aabcf1518Q (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Ms. K. Amulya, Ca रधजस् व द्वधरध/Revenue By:: Shri Jeevan Lal Lavidiya, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 29/05/2024 घोर्णध की तधरीख/Pronouncement: 05/07/2024 आदेश/Order

For Appellant: Ms. K. Amulya, CAFor Respondent: : Shri Jeevan Lal Lavidiya
Section 143(3)Section 144BSection 144C(13)Section 270A

rate as contended by the assessee. Therefore, we reject the plea of the assessee to adopt LIBOR rate at the purpose of computing interest on outstanding receivables. 2.7.18 The SBI short term deposit interest rate is as under: "DOMESTIC TERM DEPOSIT RATES

Macromill Research India LLP, Hyderabad vs. DCIT, Circle-16(2), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 308/HYD/2017[2012-13]Status: DisposedITAT Hyderabad28 Jun 2024AY 2012-13

Bench: Shri K. Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri Darpan Kirpalani, ARFor Respondent: Shri Kumar Pranav, CIT-DR
Section 143(3)

excluded by the Revenue authorities. Apart from these two issues, assessee is challenging the negative working capital adjustment and also the computation of interest on outstanding receivables. 5. Learned DR, heavily placed reliance on the orders of the Revenue authorities and submitted that in respect of the prayer ... margin of the comparables shall not be made. Ground No. 8 is allowed accordingly. 12. Now coming to the issue relating to the interest on outstanding receivables, the assessee placed reliance on the decision of the Co- ordinate Benches of the Tribunal in the case of M/s. Albany Molecular Research

Oakton Global Technology Services Centre (India) Private Limited, Hyderabad vs. ITO, Ward-16(3), Hyderabad

In the result, appeal filed by the assessee is partly allowed for statistical purposes

ITA 309/HYD/2017[2012-13]Status: DisposedITAT Hyderabad12 Jun 2024AY 2012-13

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.309/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Oakton Global Technology Vs. Income Tax Officer Services Centre (India) (P) Ltd, Ward 16(3) Hyderabad Hyderabad Pan:Aaaco8824H (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Ravi Bhardwaj, Ca राज" व "ारा/Revenue By:: Smt. Th Vijaya Lakshmi, Dr सुनवाई की तारीख/Date Of Hearing: 10/06/2024 घोषणा की तारीख/Pronouncement: 12/06/2024 आदेश/Order

For Appellant: Shri Ravi Bhardwaj, CAFor Respondent: : Smt. TH Vijaya Lakshmi, DR
Section 143(3)Section 144(5)

international transaction of the Appellant and the comparable companies in accordance with the provisions of Rule 10B(1)(e) of the Rules; Imputing interest on outstanding receivables 2. Erred in making TP adjustment amounting to Rs.19,53,369 by imputing interest at rate charged by SBI on short term fixed ... working capital adjustments have already been taken into account in determining the arm's length margin hence there is no need of imputing interest on outstanding receivables again. (iii) Not appreciating the facts and circumstances surrounding the receivables and re-characterising the outstanding receivables as unsecured loans advanced

Inmobi Technology Services Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle3(1)(1), Bangalore

In the result appeals filed by assessee for AY

ITA 303/BANG/2022[2017-18]Status: DisposedITAT Bangalore11 Jun 2024AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A Nos. 303 & 839/Bang/2022

For Appellant: Shri Chaitanya, Sr. Advocate a/wFor Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(2)Section 143(3)Section 92C

services, to include expenses reimbursed, cost of stock incentive ESOP and cost of travel and other expense; and c. Imputation of notional interest on outstanding receivables. 4.4 In response to the notice issued by the Ld.TPO, submissions were made by the assessee. Subsequently, the Ld.TPO passed the order under section ... ESOP costs, travel costs and operating expenses in the operating cost base of the assessee. 4.7.1 With respect to the imputation of interest on outstanding receivables, the DRP directed the Ld.TPO to consider the SBI short term deposit rate instead of the SBI prime lending rate adopted by the Ld.TPO

Mckinsey Knowledge Centre India Pvt. Ltd., Haryana vs. DCIT Circle 16(1), Delhi

In the result, assessee’s appeal is partly allowed for statistical purposes

ITA 475/DEL/2022[2017-18]Status: DisposedITAT Delhi04 Jun 2024AY 2017-18

Bench: Shri Shamim Yahya & Shri Sudhir Kumarmckinsey Knowledge Centre India Pvt. Ltd., Vs. Dcit, Circle 16 (1), 3Rd Floor, Block Iii, Delhi. Vatika Business Park, Sector 49, Sohna Road, Gurgaon – 122 018 (Haryana). (Pan : Aaccm2356G) (Appellant) (Respondent) Assessee By : Shri Porus Kaka, Sr. Advocate Shri Divesh Chawla, Advocate Revenue By : Shri Rajesh Kumar, Cit Dr Date Of Hearing : 24.04.2024 Date Of Order : 04.06.2024 Order Per Shamim Yahya: This Appeal By The Assessee Is Directed Against The Order Of The Assessing Officer Dated 21.01.2022 Pursuant To The Directions Issued By The Drp For The Assessment Year 2017-18. 2. Grounds Of Appeal Taken By The Assessee Read As Under :-

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR

back office services. 1.12 If the above Ground No.6 is allowed, Ground Nos. 7 to 12 on comparables will become academic. 2. Notional Interest on outstanding receivables [Ground No. 15] Finding of the lower authorities 2.1 The learned TPO recharacterized the outstanding receivables as unsecured loans advanced by the Appellant ... expenses. Hence, in the absence of interest outflow in the Appellant's books due to its debt-free status, any adjustment for notional interest on outstanding receivables is not warranted. 9 2.5 Reliance is also placed on decision of jurisdictional Hon'ble Tribunal ruling in the Appellant's own case

M/S Kantar Gdc India Pvt. Ltd. (Formerly Tns India Pvt Ltd), Hyderabad vs. Dy. Commissioner of Income Tax, Circle-2(2), Hyderabad

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 2261/HYD/2017[2013-14]Status: HeardITAT Hyderabad03 Jun 2024AY 2013-14

Bench: Shri Mahavir Singh & Shri Manjunatha, G.आ.अपी.सं /Ita No.2261/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2013-14) M/S. Kantar Gdc India (P) Vs. Dy. C. I. T. Ltd (Formerly Tns India (P) Circle 2(2) Ltd, Hyderabad Hyderabad Pan:Aabcn2278F (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Advocate Harpreet Singh Ajmani राज" व "ारा/Revenue By:: Shri Shiva Sewak, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 15/05/2024 घोषणा की तारीख/Pronouncement: 03/06/2024 आदेश/Order

For Appellant: Advocate Harpreet Singh AjmaniFor Respondent: : Shri Shiva Sewak, CIT(DR)
Section 143(3)Section 144C(5)Section 271(1)(c)

services transactions, which have been determined to be at arm's length. Interest on Receivables 3. Making TP adjustment by imputing interest on outstanding receivables relating to provision of services to AE's : a) Not appreciating the fact that the receivables are consequential/closely linked to the principal transactions; b) Under ... next issue that came up for our consideration from Ground Nos.3 & 4 of assessee’s appeal is TP adjustment by imputing the interest on outstanding receivables relating to provision of services to its AEs. The learned Assessing Officer has made TP adjustment in respect of receivable from

Satyam Venture Engineering Services Private Limited, Secunderabad vs. Assistant Commissioner of Income Tax, Central Circle -3(2), Hyderabad

In the result, appeal of the assessee is partly allowed and for statistical purpose

ITA 192/HYD/2021[2016-17]Status: DisposedITAT Hyderabad31 May 2024AY 2016-17

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdiaआ.अपी.सं / Ita-Tp No. 192/Hyd/2021 (धििाारण वर्ा / Assessment Year: 2016-17) Satyam Venture Assistant Commissioner Engineering Services Vs. Of Income Tax, Private Limited, Central Circle-3(2), Secunderabad Hyderabad [Pan No. Aafcs3287D] अपीलार्थी / Appellant प्रत्‍यर्थी / Respondent

For Appellant: Shri E.V. Sri Krishna, ARFor Respondent: Ms. L. Sunitha Rao, CIT-DR
Section 143(3)Section 40

assessee is fully funded by its AEs and does not bear any working capital risks; that the assessee does not charge any interest on outstanding receivables from third party customers as well; and that the assessee has outstanding payables due to AEs on which no interest has been levied ... short term deposit rate as Page 6 of 15 ITA-TP No. 192/Hyd/2021 appropriate CUP to determine the ALP of the interest on outstanding receivables. 13. We have considered the submissions on either side. In view of the view taken by the Hon'ble Bombay High Court in Patni Computer

ACIT., Central Circle 3(4), Hyderabad vs. Hetero Labs Limited, Hyderabad

In the result, the appeal of Revenue in ITA No

ITA 349/HYD/2023[2018-19]Status: DisposedITAT Hyderabad21 May 2024AY 2018-19

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.312 & 313/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2017-18 & 2018-19) Hetero Labs Limited, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent आ.अपी.सं / Ita Nos.348 & 349/Hyd/2023 (िनधा"रण वष" / Assessment Years: 2017-18 & 2-18-19) The Assistant Vs. Hetero Labs Limited, Commissioner Of Income Hyderabad. Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent

For Appellant: Shri D. Prabhakar Reddy, AdvocateFor Respondent: Shri M.Vijay Kumar, CIT-DR
Section 143(3)

just and fair to adopt LIBOR rate + 200 basis points as the applicable ALP interest rate for the purpose of imputation of interest on outstanding receivables from AEs. The relevant portion of the said decision is reproduced as under: "5.5. For the A Yrs 2013-14 and 2014-15, there ... adjustment has been granted by the Id. 'TPO to the assessee for both the years and hence, there cannot be further imputation of interest on outstanding receivables as the same gets subsumed in the working capital adjustment itself. In this regard the Id. AR placed reliance on the decision

ACIT., Central Circle 3(4), Hyderabad vs. Hetero Labs Limited, Hyderabad

In the result, the appeal of Revenue in ITA No

ITA 348/HYD/2023[2017-18]Status: DisposedITAT Hyderabad21 May 2024AY 2017-18

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.312 & 313/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2017-18 & 2018-19) Hetero Labs Limited, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent आ.अपी.सं / Ita Nos.348 & 349/Hyd/2023 (िनधा"रण वष" / Assessment Years: 2017-18 & 2-18-19) The Assistant Vs. Hetero Labs Limited, Commissioner Of Income Hyderabad. Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent

For Appellant: Shri D. Prabhakar Reddy, AdvocateFor Respondent: Shri M.Vijay Kumar, CIT-DR
Section 143(3)

just and fair to adopt LIBOR rate + 200 basis points as the applicable ALP interest rate for the purpose of imputation of interest on outstanding receivables from AEs. The relevant portion of the said decision is reproduced as under: "5.5. For the A Yrs 2013-14 and 2014-15, there ... adjustment has been granted by the Id. 'TPO to the assessee for both the years and hence, there cannot be further imputation of interest on outstanding receivables as the same gets subsumed in the working capital adjustment itself. In this regard the Id. AR placed reliance on the decision

Hetero Labs Limited, Hyderabad vs. ACIT, Central Circle-3(4), Hyderabad

In the result, the appeal of Revenue in ITA No

ITA 313/HYD/2023[2018-19]Status: DisposedITAT Hyderabad21 May 2024AY 2018-19

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.312 & 313/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2017-18 & 2018-19) Hetero Labs Limited, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent आ.अपी.सं / Ita Nos.348 & 349/Hyd/2023 (िनधा"रण वष" / Assessment Years: 2017-18 & 2-18-19) The Assistant Vs. Hetero Labs Limited, Commissioner Of Income Hyderabad. Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent

For Appellant: Shri D. Prabhakar Reddy, AdvocateFor Respondent: Shri M.Vijay Kumar, CIT-DR
Section 143(3)

just and fair to adopt LIBOR rate + 200 basis points as the applicable ALP interest rate for the purpose of imputation of interest on outstanding receivables from AEs. The relevant portion of the said decision is reproduced as under: "5.5. For the A Yrs 2013-14 and 2014-15, there ... adjustment has been granted by the Id. 'TPO to the assessee for both the years and hence, there cannot be further imputation of interest on outstanding receivables as the same gets subsumed in the working capital adjustment itself. In this regard the Id. AR placed reliance on the decision

Hetero Labs Limited, Hyderabad vs. ACIT, Central Circle-3(4), Hyderabad

In the result, the appeal of Revenue in ITA No

ITA 312/HYD/2023[2017-18]Status: DisposedITAT Hyderabad21 May 2024AY 2017-18

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita Nos.312 & 313/Hyd/2023 (िनधा"रण वष" / Assessment Year: 2017-18 & 2018-19) Hetero Labs Limited, Vs. The Assistant Commissioner Of Hyderabad. Income Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent आ.अपी.सं / Ita Nos.348 & 349/Hyd/2023 (िनधा"रण वष" / Assessment Years: 2017-18 & 2-18-19) The Assistant Vs. Hetero Labs Limited, Commissioner Of Income Hyderabad. Tax, Central Circle – 3(4), Pan : Aaach5506R Hyderabad. अपीलाथ" / Appellant "" यथ" / Respondent

For Appellant: Shri D. Prabhakar Reddy, AdvocateFor Respondent: Shri M.Vijay Kumar, CIT-DR
Section 143(3)

just and fair to adopt LIBOR rate + 200 basis points as the applicable ALP interest rate for the purpose of imputation of interest on outstanding receivables from AEs. The relevant portion of the said decision is reproduced as under: "5.5. For the A Yrs 2013-14 and 2014-15, there ... adjustment has been granted by the Id. 'TPO to the assessee for both the years and hence, there cannot be further imputation of interest on outstanding receivables as the same gets subsumed in the working capital adjustment itself. In this regard the Id. AR placed reliance on the decision

Value Momentum Software Services Private Limited, Hyderabad vs. ACIT, Circle-8(1), Hyderabad

In the result, appeal of the assessee is allowed in part

ITA 497/HYD/2022[2018-19]Status: DisposedITAT Hyderabad21 May 2024AY 2018-19

Bench: Shri K. Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Ms. Tanmayee Rajkumar, ARFor Respondent: Smt. L. Sunitha Rao, CIT-DR
Section 143(3)

Tata Autocomp Systems Ltd., [2015] 56 taxmann.com 206. 6. Learned DR submitted that the question as to whether or not the interest on outstanding receivables is no longer res integra. She further submitted that in the absence of any proof that the assessee allowed 180 days period for not referring ... amendment to Section 92B of the Act by way of Finance Act, 2012 with retrospective effect from 01/04/2002 that, the interest on outstanding receivables is an international transaction, and it certainly requires separate benchmarking. 8. There is no dispute that the learned DRP in the directions dated 08/06/2022 directed