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2019 (8) TMI 1749 - AT - Income TaxTP Adjustment - adjustment to the international transaction of the assessee on account of the arm‟s-length price with respect to the interest on overdue receivable - HELD THAT:- Outstanding receivable from the associated enterprises which are shown as a debtor in the books of the assessee are part of the working capital of the assessee. If the outstanding debtors are part of the working capital of the assessee, they have already been included in the working capital adjustment worked out. Thus, if the adjustment proposed by the learned transfer pricing officer and approved by the learned dispute resolution panel accepted working capital adjustment, then it will amount to double addition in the hands of the assessee. The issue is also squarely covered by the decision of KUSUM HEALTHCARE PRIVATE LIMITED [2017 (4) TMI 1254 - DELHI HIGH COURT] wherein as accepted the reasoning that with the assessee having already factored in the impact of the receivable on the working capital and thereby on its pricing/profitability and that of its comparables, any further adjustments only on the basis of the outstanding receivable would have distorted the picture and re-characterize the transaction - No reason to sustain the addition made by the learned transfer pricing officer incorporated in the final assessment order. Ground number 2 of the appeal of the assessee is allowed.
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