Case Law Details
Parle Biscuits Private Limited Vs Assessment Unit (ITAT Mumbai)
ITAT Mumbai held that TPO rightly treated interest receivables as a loan outstanding given by assessee to its Associated Enterprises (AE) and charging interest on the same.
Facts- The assessee company was established in 1974 in Mumbai and is 100% subsidiary of Parle Products Pvt Ltd. The assessee manufactures wide range of biscuits, confectionary, snacks and bakery products. During the year under consideration, the assessee has entered into various international transactions. TPO made adjustments to interest on accounts receivables and interest on interest receivables.
AO passed a draft assessment order incorporating the said TP adjustment. AO also made an addition of Rs.3,26,32,245/- being the amount which the assessee had declared as any other addition u/s.28 to 44DA in the tax audit report, failed to add the same in the income tax return filed. AO also made an addition of Rs.98,17,464/- u/s. 40(a)(ia).
Aggrieved, the assessee filed its objections before the DRP, who confirmed the TP addition and gave certain directions with regard to the other additions made by AO. The assessee is in appeal before the Tribunal against the final order of assessment passed by AO.
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