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2022 (7) TMI 260 - AT - Income TaxTPA - Notional interest charged on receivables outstanding - Whether receivables constitute separate international transactions under section 92B read with section 92F of the Act and Rule 10B of the Rules? - delayed payments received by the assessee from its various AEs as unsecured loan advanced to the AEs and charged a rate of interest based Libor plus 300 bps i.e. 4.78% on receivables outstanding for more than 54 days - HELD THAT:- As Hon'ble Delhi High Court in the case of Kusum healthcare Pvt. Ltd. [2017 (4) TMI 1254 - DELHI HIGH COURT] it is held that the appellant having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-a-vis that of its comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and re-characterised the transaction. In view of the same the transfer pricing adjustment made by the AO/TPO is deleted. The ground of appeal is decided in favour of the assessee.
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