Transfer Pricing – Even Business Advance Has To Be At Libor ALP – ITAT Mumbai

ITAT MUMBAI “K ” BENCH

I.T.A. No. 7872/Mum/2011

Assessment Year: 2007-08

Aurionpro Solutions Ltd.

Vs.

The Addl Commr of Income Tax

Date of Pronouncement: 12^th, April 2013

ORDER

PER : VIJAY PAL RAO, JM

This appeal by the assessee is directed against the assessment order dated 18.10.2011 passed u/s 143(3) r.w.s 144C(13) in pursuant to the directions of the Dispute Resolution Panel (DRP) dated 25.8.2011 passed u/s 144C(5) of the act for the Assessment Year 2007-08.

2 The assessee has raised the following grounds in this appeal:

1. On the facts and circumstances of the case the leaned Assessing Officer erred in assessing the Income of Rs. 4,15,33.050/- instead of the Retuned Income of Rs. 3,36,14,278/-.

2. On the facts and circumstances of the case the learned Assessing Officer erred in making Transfer Pricing adjustment of Rs. 53,43,272/- being the interest on Working Capital advances given to the Associated Enterprises without looking into the facts of the case.

3. On the facts and circumstances of the case the learned Assessing Officer erred in making the addition of Rs. 6,75,000/- being payment made by the Appellant to M/s Credence Analytics (I) Pvt. Ltd. at the end of the year and the same recorded by them on receipt of the same in F.Y. 2007-08.