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2023 (2) TMI 1160 - AT - Income TaxTP Adjustment - imputing interest on outstanding receivables due from AEs - HELD THAT:- As the issue is already decided by the Coordinate Bench in favour of the assessee. In the circumstances, the remaining unchanged as compared to the A.Y. 2017-18, this issue is squarely covered in assessee’s own case for A.Y. 2017-18. So, the addition made on account of transfer pricing adjustment on outstanding receivables amount is to be decided afresh in the light of above order in assessee’s own case. Not considering export incentives as operating item while determining margin of the Appellant - assessee humbly submitted that export incentive income earned is directly linked to the provision of services by the entity to its group company. Accordingly. income earned by sale of SEIS scrips should be considered as operating in nature while determining the operating revenue of the assessee - HELD THAT:- We consider that an item which relates to the international transaction in question, be considered as an operating item for the purpose of computation of operating profit margin of such transaction. The income recognized for such scrips relates to the provision of IT enabled services, as the entitlement to such scrips arises only on account of such IT enabled services rendered by the assessee to its AEs. Accordingly, such income qualifies as a part of operating revenue for the purpose of computation of operating profit margin of the transaction pertaining to rendering of IT enabled services by the assessee. In this case it may be appropriate to consider export incentive as part of operating revenue in a TNMM analysis.
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