Discuss in brief the repercussion of addition of 1.2 crores to the income of EVML.

On account of the primary adjustment of 1.20 crores made by the Assessing Officer in the total income of EVML for A.Y.2023-24, secondary adjustment has to be made under section 92CE, since – (i) The company has accepted the primary adjustment made by the Assessing Officer; (ii) The primary adjustment is in respect of A.Y.2023-24; and (iii) The primary adjustment exceeds 100lakhs. Accordingly, the excess money i.e.,1.20 crores available with the associated enterprise has to be repatriated to India within 90 days of the date of the order of the Assessing Officer. If the same is not repatriated to India within that time limit, it would be deemed as an advance made by the EVML to its associated enterprise and interest would be calculated on such advance at the rate of six-month LIBOR as on 30th September, 2024 + 3%, since the international transaction is denominated in foreign currency. Such interest computed from 30.1.2025 to 31.3.2025 would be added to its total income for A.Y.2025-26. Alternatively, EVML can opt to pay additional income-tax @20.9664% (tax @18% plus surcharge @12% plus cess@4%) on 1.20 crores, which amounts to 25,15,968.