Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 831 - ITAT DELHITransfer Pricing Adjustment - selection of one comparable namely, Interactive Man Power Solution Pvt. Ltd. (IMSPL) - HELD THAT:- The comparable in dispute is engaged in the business of recruitment service provider and staffing solutions. The ld. DRP accepted to the fact that it is clear from the annual report that the comparable in question is engaged in the business of recruitment process outsourcing services but at the same time upheld the action of the TPO holding that the comparable is providing support services to their clients. We have seen that there are no segmental financials for marketing and the functions of the assessee are different from that of the comparable thus defaulting the FAR analysis. Hence, we hereby direct that IMSPL be deleted from the list of comparables. Adjustment on account of notional interest on the receivables - HELD THAT:- In all these years, the assessee is found to be a debt free company and there is no dispute on these facts. We have considered the judgment of Pr. CIT Vs BECHTEL India Pvt. Ltd. for the assessment year 2010-11 [2016 (9) TMI 196 - DELHI HIGH COURT] after examining the order in the assessee's own case affirmed that when the assessee is a debt free company, the question of charging any interest on receivables do not arise. The SLP filed by the revenue has been summarily dismissed by the Hon'ble Supreme Court [2017 (7) TMI 1058 - SC ORDER] Even on general fundamentals, when the assessee is having their own funds and not paying interest on any loans, then there is no obligation on the assessee to charge interest from the interest free loan given nor any provision of the Act mandate the Assessing Officer to add notional interest received to the total income - the assessee being a debt free company, the action of the revenue making adjustment on account of notional interest on the receivables cannot be held to be legally valid. Reconciliation of income credited to P&L account and in the amount reflected in AS-26 - HELD THAT:- DRP held that the reconciliation is primary correct and directed the AO to verify and give effect which the AO failed to carry out. The AO is hereby directed to follow the directions given by the ld. DRP without fail while passing the order giving effect to the ITAT order. Deduction of "Education Cess" under the head "income from business and profession" - HELD THAT:- The similar issue has been adjudicated by the Co-ordinate Bench of ITAT in a number of cases wherein the "Education Cess" is held to be an allowable deduction. See Bharat Rasayan Ltd. [2021 (3) TMI 710 - ITAT DELHI] - Decided in favour of assessee.
|