ACIT Vs Cargil India Pvt. Ltd. (ITAT Delhi)
ITAT Delhi affirmed direction of CIT(A) to take average of prices reported in Kingsman Publication report and New York Board of Trade [NYBOT] price after converting FOB as per Comparable Uncontrolled Price [CUP] for purpose of computing ALP on issue of import sugar.
Facts- The assessee company is a company incorporated as per the provisions of Companies Act, 1956. The case of assessee was selected for scrutiny. AO made additions/ disallowances of discounting charges amounting to Rs.5,72,77,093/-; deemed dividend amounting to Rs.40,89,99,750/-; interest expenses amounting to Rs.9,5392,316/-; depreciation on computer accessories amounting to Rs.75,580/- and Transfer Pricing additions amounting to Rs.1,99,44,362/-.
CIT(A) partly allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion- The projects were completed and put to use in July, 2004 and the interest cost capitalized for four months only. The Ld. AO has not disputed the Capital work in progress. The Ld. CIT(A) has rightly applied the rate of interest for four months on the short term loan of Rs.20,45,26,795/- and the internal accrual of Rs.6,25,57,646/-. We do not find any reason to interfere with the findings of the Ld. CIT(A), hence, we uphold the same and reject the ground no. 1(i) raised by the Revenue.
