If commercial transaction is at ALP, no transfer pricing addition for non-charging of interest on overdue debt can be made

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI J BENCH, MUMBAI ITA No. 6597/Mum/09 Assessment year: 2004- 05 Nimbus Communications Limited Vs. Assistant Commissioner of Income Tax O R D E R Per Pramod Kumar: 1. The short issue that we are required to adjudicate in this appeal is whether the Commissioner (Appeals) was justified in sustaining an arm’s length price (ALP) adjustment in respect of interest not charged by the assessee on debit balances, overdue beyond thirty days, of assessee’s associated enterprises. The assessment year involved in 2004-05. 2. The issue in appeal ...