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| The Tax Publishers2020 TaxPub(DT) 2886 (Mum-Trib) INCOME TAX ACT, 1961
Section 92CA
Where assessee challenged adjustment made under section 92CA for notional interest on account of delay in realization of debts from AEs, considering fact that details were furnished by assessee about delay in realizing the money of sales from AEs and non AEs, and working of delay of credit period for AE and non AEs, was not disputed by revenue, said adjustment was unjustified.
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Transfer pricing - Computation of ALP - Addition of notional interest on account of delay in realization of debts from AEs -
Assessee challenged adjustment made under section 92CA being notional interest on account of delay in realization of debts from Associated Enterprises (AEs).It contended that same should be imputed in computing operating margin of assessee and not as an independent international transaction. Held: From the details furnished by assessee about delay in realizing the money of sales from AEs and non AEs, it was observed that working of delay of credit period for AE and non AEs, was not disputed by revenue. Considering decision of Tribunal in assessee's own case for assessment year 2009-10 and 2010-11, no notional interest adjustment was warranted against assessee.
Followed:M/s. Dania Oro Jewellery (P) Ltd. v. The ITO 2018 TaxPub(DT) 0584 (Mum-Trib) The ITO 8 (1) (3) Mumbai v. Dania Oro Jewellery (P) Ltd. [I.T.A. No.802/Mum/2014, dt. 29-7-2016]
REFERRED : CIT-9 v. Indo American Jewellery Ltd. [Income Tax Appeal (L) No. 1053 of 2012, dt. 8-1-2013] Dr. T.P. Kapadia v. CIT, Mysore. (1973) 87 ITR 511 (Mys.) : 1973 TaxPub(DT) 0160 (Mys-HC)
FAVOUR : In assessee's favour
A.Y. : 2012-13
IN THE ITAT, MUMBAI BENCH
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