Concur Technologies (India) Private Limited Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that interest rate should be charged on the basis of prevailing LIBOR rate and no SBI PLR rate since invoices are raised in foreign currency. Accordingly, it is directed to TPO to apply LIBOR rate as basis for computation of interest.
Facts- The assessee, Concur Technologies (India) Private Limited, is engaged in the provision of services to its Associated Enterprises (AEs) of IT-enabled Services [ITes] with respect to travel request, travel bookings and claims of expenses. The assessee filed its return of income on 1.1.2021 at a total income of Rs.36,12,59,340 which was picked up for scrutiny and one of the reasons for scrutiny was examination of TP aspect of international transactions based on TP risk parameters.
The TPO found that there is delay in receivable from the AEs over and above the agreed period and therefore it amounts to a separate international transaction which needs to be benchmarked separately. Accordingly the TPO computed number of days of delay exceeding the agreed days as per agreement, applied SBI PLR of 13.27% and proposed an adjustment of Rs. 1,77,77,133.
Total ALP adjustment proposed was of Rs.12,93,75,803 by order of TPO passed u/s. 92CA (3) of the Act dated 9.2.2023. Based on this, a draft order u/s. 144C(1) of the Act was passed by the Assessment Unit on 26.9.2023 assessing the income of assessee at Rs.49,06,81,713 incorporating the above TP adjustment proposed of Rs.12,93,75,803.
