Calculation of Interest Solely on Trade Receivables for ALP Determination is Unreasonable: ITAT [Read Order]
The bench directed the Assessing Officer to consider both trade payables and trade receivables for the purpose of notional interest to be charged for determining the ALP value of the transaction.
In a recent ruling, the Hyderabad bench of the Income Tax Appellate Tribunal (ITAT) held that it is unreasonable to calculate interest on trade receivables solely for determining arm’s length price (ALP). The assessee Microchip Technology has approached the ITAT challenging the order dated 29/07/2022 passed by the Deputy Commissioner of Income Tax, for the…
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