DEPUTY COMMISSIONER OF INCOME TAX, GUNTUR vs. CCL PRODUCTS (INDIA) LIMITED, DUGGIRALA

In the result, appeal filed by the Revenue is dismissed

Bench: Shri V. Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./I.T.A. No.97/Viz/2025 (निर्धारण वर्ा/ Assessment Year: 2011-12) Deputy Commissioner Of Income V. Ccl Products (India) Limited, Tax, Guntur-522330, Guntur-522004. Andhra Pradesh. Pan: Aaacc9552G (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

92B by Finance Act, 2012 if there is any delay in realization of a trading debt arising from sale of goods or services rendered in course of carrying on of business, assessee is liable for transfer pricing adjustment on account of interest income short charged / uncharged as held by Hon’ble Delhi High Court in the case of MCkinsey Knowledge

DEVI SEA FOODS LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE -3(1), VISAKHAPATNAM

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.156/Viz/2022 (निर्धारण वर्ा / Assessment Year : 2018-19) M/S Devi Sea Foods Limited Vs. Deputy Commissioner Of 50-1-51/1, A.S.R.Nagar Income Tax Seethammadhara Circle-3(I) Visakhapatnam Visakhapatnam [Pan : Aabcd0248B] अपीलधथी की ओर से/ Appellant By : Shri D.Anand, Ar प्रत्यधथी की ओर से / Respondent By : Shri M.N.Murthy Naik, Cit(Dr) सुिवधई की तधरीख / Date Of Hearing : 01.12.2022 घोर्णध की तधरीख/Date Of Pronouncement : 16.12.2022 O R D E R Per Shri S.Balakrishnan:

section 92B of the Act which read as “any other transaction having a bearing on the profits, income, losses or assets of such enterprises” and thus concluded that in the instant case the corporate guarantee issued on behalf of its AEs must be taxed @ 1.9% on the guaranteed amount. The Ld. TPO also observed in para 12.10 of his order

ASSISTANT COMMISSIONER OF INCOME, CIRCLE-1(1),, GUNTUR vs. M/S CCL PRODUCTS(INDIA) LIMITED, GUNTUR

In the result, appeal of the revenue is dismissed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.348/Viz/2018 (ननधधारण वर्ा/ Assessment Year:2014-15) Dcit, Circle-1(1) Vs. M/S Ccl Products (India) Guntur Pvt. Ltd. Duggirala Post & Mandal Guntur [Pan : Aaacc9552G] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri D.K.Sonowal, Dr प्रत्यधथी की ओर से/ Respondent By : Shri Ramesh Babu, Ar सुनवधई की तधरीख / Date Of Hearing : 20.03.2019 घोर्णध की तधरीख/Date Of Pronouncement : 03 .04.2019

92B ,inserted by Finance Act 2012 w.e.f.01.04.2002, receivables are treated as international transaction. Since the taxpayer failed to submit the details, the TPO proposed to charge interest @6% on delayed payments beyond 60 days credit period. The AO relied on the case of M/s Logix Micro Systems Ltd., 42 SOT 525 and M/s Chiel India Pvt. Ltd. [TS-145-ITAT

M/S. MAHATI SOFTWARE PVT. LTD.,VISAKHAPATNAM vs. THE ACIT,, VISAKHAPATNAM

In the result, appeals of the assessee are partly allowed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.67/Viz/2016 & 68/Viz/2017 (निर्धारण वर्ा/Assessment Year:2011-12 & 2012-13) M/S Mahati Software Pvt. Ltd. Vs. Asst. Commissioner Of D.No.10-27-14A Income Tax Sivam, Kailashmetta Circle-3(1) Waltair Visakhapatnam Visakhapatnam [Pan : Aadcm9620J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

section 92B of the Act directly. Accordingly held that the receivables automatically take the character of loans after the expiry of normal period of 30 days. The Ld.DRP relied on the Logix Micro Systems Ltd. wherein the ITAT Bengaluru confirmed the adjustment of charging interest on receivables. However, the Ld.DRP has scaled down the interest to the cost

MAHATI SOFTWARE PVT LTD.,,VISAKHAPATNAM vs. THE ACIT,, VISAKHAPATNAM

In the result, appeals of the assessee are partly allowed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.67/Viz/2016 & 68/Viz/2017 (निर्धारण वर्ा/Assessment Year:2011-12 & 2012-13) M/S Mahati Software Pvt. Ltd. Vs. Asst. Commissioner Of D.No.10-27-14A Income Tax Sivam, Kailashmetta Circle-3(1) Waltair Visakhapatnam Visakhapatnam [Pan : Aadcm9620J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

section 92B of the Act directly. Accordingly held that the receivables automatically take the character of loans after the expiry of normal period of 30 days. The Ld.DRP relied on the Logix Micro Systems Ltd. wherein the ITAT Bengaluru confirmed the adjustment of charging interest on receivables. However, the Ld.DRP has scaled down the interest to the cost

DEVI SEA FOODS LIMITED,VISAKHAPATNAM vs. DCIT, CIRCLE-3(1), VISAKHAPATNAM

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./ I.T.A. No.75/Viz/2022 ("नधा"रणवष"/ Assessment Year: 2017-18) M/S. Devi Sea Foods Limited, Vs. Deputy Commissioner Of Visakhapatnam. Income Tax, Pan: Aabcd 0248 B Circle-3(1), Visakhapatnam. (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ"क"ओरसे/ Appellant By : Sri D. Anand, Advocate ""याथ"क"ओरसे/ Respondent By : Sri Mn Murthy Naik, Cit-Dr

section 92B of the Act which read as “any other transaction having a bearing on the profits, income, losses or assets of such enterprises” and thus concluded that in the instant case the corporate guarantee issued on behalf of its AEs must be taxed @ 1.9% on the guaranteed amount. The Ld. TPO also observed in para 12.10 of his order

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRLCE-1(1),, GUNTUR vs. CCL PRODUCTS(INDIA) LIMITED, DUGGIRALA

In the result, appeal filed by the Revenue is dismissed

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

Section 92B of the Act and consequently, ALP adjustment is not warranted on this aspect.” 5.2. Similar view was taken up by the Coordinate Bench of ITAT, Hyderabad in the case of Batronics India Ltd. (supra). In the instant case, the facts are identical. The assessee had given corporate guarantee to its 100% subsidiary and the AE for the purpose

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), GUNTUR vs. CCL PRODUCT (INDIA) PRIVATE LIMITED, GUNTUR

In the result, appeal of the revenue is dismissed

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.191/Viz/2018 (धनधाारण िर्ा/Assessment Year:2013-14) Dy.Commissioner Of Vs. M/S Ccl Products (India) Income-Tax, Circle-1(1) Pvt. Ltd. Guntur Duggirala Post & Mandal Guntur [Pan :Aaacc9552G] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलाथी की ओर से/ Appellant By : Shri K.C.Das, Dr प्रत्यथी की ओर से / Respondent By : Shri K.Ramesh Babu, Ar सुनिाई की तारीख / Date Of Hearing : 19.09.2018 28 .09.2018 घोषणा की तारीख/Date Of Pronouncement :

disallowed the difference in arm's length price as determined by the TPO of Rs.62,07,858/-. 5 M/s CCL Product (India) Pvt. Ltd., Guntur The Assessee is a Public Limited Company listed in the BSE & NSE Stock Exchanges and is a 100% EOU with about 98% export sales. It is having a 100% subsidiary in Singapore Viz. M/s. Jayant

TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1), VISAKHAPATNAM

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

Bench: Shri Vijay Pal Rao, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.No.340/Viz/2024 (निर्धारण वर्ा/ Assessment Year: 2020-21) & S.A. No. 15/Viz/2025 (निर्धारण वर्ा/ Assessment Year: 2020-21) Teejay India Private Limited, Vs. Deputy Commissioner Of Plot No. 15, Brandix, Apsez, Income Tax, Pudimadaka Road, Atchutapuram Circle-5(1), Mandal, Visakhapatnam-530011. Visakhapatnam. Pan: Aaaco9452H (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

disallowing an amount of Rs. 23,47,826/- towards amortization of leasehold rights. Grounds for imputation of notional interest on outstanding receivables. 1. On the facts and in the circumstances of the case, the Ld. DRP/AO/TPO erred in : 1.1. Considering overdue receivables from AEs as an international transaction under the provisions of section 92B

TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, DC/AC 4(1), VISAKHAPATNAM

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

section 92B of the Act. 7.2. Without prejudice to Ground No.7.1 above, 7.2.1 ignoring the fact that the appellant does not pay interest in relation to outstanding payable to AEs 7.3.Without prejudice to the ground No. 7.1 and 7.2 above, the Ld. DRP erred in providing notional credit period of 30 days as provided

GVK POWER AND INFRASTRUCTURE LIMITED,JEGURUPADU vs. DCIT, CIRCLE-1, RAJAHMUNDRY

In the result, appeal of the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

section 92B of the Act, in the instant case it cannot be disputed to be an international transaction. The contention of the Ld. AR is against the benchmarking @ 7% on the outstanding guarantee commission receivable. The Ld. AR also demonstrated that the AE is in financial difficulties and hence the assessee has subscribed the preference share capital issued

GVR POWER & INFRASTRUCTURE LIMITED,KADIYAM vs. ACIT, CIRCLE - 2(1), RAJAHMUNDRY

In the result, the appeal filed by the assessee is partly allowed

Bench: Shri V. Durga Rao & Shri D.S. Sunder Singh

section 92B by Finance Act, 2012, the DRP held that the differed receivables would constitute international transaction and interest has to be bench GVK Power & Infrastructure Ltd., Jegurupadu marked for delay beyond the allowable credit period and accordingly directed the A.O. to determine the ALP. However, the DRP was of the view that the adjustment proposed

TEEJAY INDIA PRIVATE LIMITED,VISAKHAPATNAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1), VISAKHAPATNAM

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

section 92B of the Act. While deciding on the identical issue the ITAT in the case of M/s. Devi Sea Foods Limited vs. DCIT in ITAT No.75/Viz/2022, dated 9/9/2022, held as follows: “7……….There is no dispute with regard to the fact that receivables is included under the definition of international transaction consequent to the amendments made by the Finance