Income Tax Appellate Tribunal - Cochin
D H Solutions India Private ... vs The Deputy Commissioner Of Income-Tax, ... on 30 May, 2025
IN THE INCOME TAX APPELLATE TRIBUNAL
COCHIN BENCH, COCHIN
Before Shri Inturi Rama Rao, Accountant Member
&
Shri Prakash Chand Yadav, Judicial Member
IT(TP)A No.3/Coch/2024 : Asst.Year 2020-2021
D H Solutions India Pvt.Ltd. The Dy.Commissioner of
408, 4th Floor,Thejaswini v. Income-tax, Cir. 1(1)
Technopark Trivandrum.
Trivandrum - 695 581.
PAN : AAICS8235J.
(Appellant) (Respondent)
Appellant by : Sri.Vishal Kalra, Advocate
Respondent by : Sri.Sundarasan S, CIT-DR
Date of
Date of Hearing : 28.05.2025. Pronouncement : 30.05.2025
ORDER
Per Prakash Chand Yadav, JM :
The present appeal is arising from the order of the learned Assessing Officer dated 4th July, 2024.
2. The solitary issue involved in this appeal is regarding the calculation of interest on outstanding receivables, as computed by the Transfer Pricing Officer (TPO) and affirmed by DRP. The TPO has levied a rate of interest of six months Libor plus 550 basic points on the outstanding receivables. The learned Counsel for the assessee argued that the assessee is a debt free company, and hence, the TPO and the DRP have erred in attributing any interest towards outstanding receivables. Alternatively it was submitted that six month LIBOR +200 2 ITA No.3/Coch/2024. D H Solutions India Private Limited.
basic points would be made as interest rate attributable to outstanding receivables of more than 90 days.
3. The learned DR relied upon the orders of the authorities below.
4. We have heard the rival submissions and perused the material available on record. Considering the alternative prayer of the assessee, we deem it appropriate that purpose of justice would be served if six months Libor plus 200 basis points is applied on the outstanding receivables for more than 90 days. With this observation we remit this matter back to the file of TPO for computing the interest on outstanding receivables by applying the rate of six months Libor plus 200 basis points with respect those amounts which were remain payable even after the credit period of 90 days. It is ordered accordingly.
5. In the result, the appeal filed by the assessee is partly allowed.
Order pronounced on this 30th day of May, 2025.
Sd/- Sd/-
(Inturi Rama Rao) (Prakash Chand Yadav)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Cochin; Dated : 30th May, 2025.
Devadas G*
3
ITA No.3/Coch/2024.
D H Solutions India Private Limited.
Copy to :
1. The Appellant.
2. The Respondent.
3. The CIT, Cochin.
4. The DR, ITAT, Cochin.
5. Guard File.
Asst.Registrar/ITAT, Cochin