Gimpex Private Ltd., Chennai vs Acit Central Circle 1(2), Chennai on 5 April, 2019
Hence, it is
only a natural corollary that it did not charge any interest for delays
also. Where a good part of the dues were collected earlier to the due
date, in our opinion the instances where there were delays could not
be selectively elected for a levy of charge of notional interest. Such an
approach if accepted will completely overlook commercial realties.
That apart, once TNMM method is considered as the most appropriate
method, as held by Ahmedabad Bench of the Tribunal in the cases of
Bisazza India (P) Ltd (supra) and Gemstone Glass Pvt Ltd (supra) the
net margin worked out there under could take care of all such
notional interest cost, wherever it could be imputed and there could
be no Arms Length Price adjustment for any overdue receivables. We
therefore delete Arms Length Price adjustment of B6,18,43,887/- made
on overdue receivables.