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2018 (3) TMI 1613 - AT - Income TaxTPA - Adjustment of interest on account of alleged delay in recovering the outstanding toward receivables from the AE as per the provisions of section 92CA(3) - Held that:- Following the decision of the coordinate Bench of the Tribunal in Kadimi Tool Manufacturing Co. (P.) Ltd. (2017 (9) TMI 1578 - ITAT DELHI) which has been confirmed by the Hon’ble High Court as well as Hon’ble Apex Court, we are of the considered view that when undisputedly, the taxpayer is a debt free company, there is no question of charging any interest on receivables by recharacterizing the transaction as loan from its AE and as such, no adjustment on account of arm’s length interest on receivables can be made. Consequently adjustment made by the TPO/DRP on account of arm’s length interest on receivables is not sustainable in the eyes of law, hence ordered to be deleted - decided in favour of assessee
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