Gimpex Private Ltd., Chennai vs Acit Central Circle 1(2), Chennai on 5 April, 2019
5. In addition to above, ld. TPO also found that assessee had
receivables of Rs.261,20,19,702/- due from M/s. SPG Mining Pte Ltd
:- 8 -: IT(TP)A No.57 /2018
and M/s. SPG Vietnam Trading, both of which were AEs. As per the
ld. TPO by virtue of the Explanation added to Section 92B of the Act
through Finance Act, 2012 with retrospective effect from 01.04.2002,
receivables which were outstanding beyond the normally allowed
credit period was exigible to a transfer pricing adjustment. Though
the assessee relied on a decision of Delhi Bench of the Tribunal in the
case of Techbooks International Pvt Ltd vs. DCIT (2015) 44 CCH 295,
ld. TPO held that an upward adjustment applying an interest rate of
12.83% was required to be made on the receivables remaining
outstanding beyond the credit period given by the assessee. An
upward adjustment of B6,18,43,887/- was proposed.