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2017 (5) TMI 1501 - ITAT DELHITPA - comparable selection criteria - Held that:- Assessee provides IT and Financial back office support services to various entities/ subsidiaries of its Parent Company all across the world. The assessee alongwith BC holdings (UK Limited) is a part of British Council which is an international organization based in UK, established for fostering educational opportunities and cultural relations.In the transfer pricing study report, the assessee has characterized itself as a service provide, thus companies functionally dissimilar with that of assessee need to be deselected as final list of comparable. Transfer pricing adjustment on account of imputing the interest on outstanding receivables - Held that:- Here in this year also, the fact remains the same that assessee is a debt free and it has neither received any interest from any creditors nor paid interest to debtors and no borrowed funds have been utilized for extending the time period of the receivables. Apart from this, it is also a fact that credit period extended to third parties is also same as provide to the AE, hence no adjustment is required to be made by treating it to be loan transaction and imputing interest on the delayed period receivables. Since similar facts and finding of Revenue authorities are permeating in this year also therefore, our finding given in the appeal for the AY 2011-12 would be squarely applicable and accordingly, this issue is decided in favour of the assessee. Foreign exchange gain or loss is operating in nature - Held that:- As already held that it is part of the operating income and therefore, it cannot be removed from the computation/working of the PLI. Accordingly, in view of the finding given in the appeal in the assessment year 2012-13, this issue too his decided in favour of the assessee.
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