Seshasayee Paper & Board Ltd vs The Deputy Commissioner Of Income Tax on 15 May, 2015
Pvt. Ltd in ITA No.503/Hyd/2017 wherein the Tribunal held that
the assessee therein was providing 180 days credit period on the
amount receivables and is consistent with the RBI guidelines on
Foreign Exchange receivables, as RBI allows a period of 1 year for
the amounts to be realized if they are in foreign exchange. He also
placed reliance upon the decision of the Coordinate Bench of the
Tribunal at Delhi in the case of Bechtel India Pvt Ltd in ITA
No.1478/Del/2015 dated 21.12.2015, wherein it was held that in
the case of a debt free company, it is not justifiable to presume
that borrowed funds have been utilized to pass on the facility to
its AEs.