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2018 (1) TMI 1733 - AT - Income TaxTP Adjustment - TPO justification in treating the outstanding receivables from the overseas AEs as unsecured loans and to impute interest thereon - HELD THAT:- We find that the assessee’s own case for the assessment year 2010-11 [2015 (4) TMI 180 - ITAT DELHI] a coordinate bench of this Tribunal reached a conclusion that if the working capital adjustment takes into account the outstanding receivables, additional imputation of interest on the outstanding receivables is not warranted. This decision of the Tribunal is upheld by the Hon’ble Jurisdictional High Court in assessee’s own case [2017 (4) TMI 1254 - DELHI HIGH COURT] for this same assessment year by holding that no error was found in the order of ITAT giving rise to any substantial question of law for a determination. We, therefore, hold that in case the working capital adjustment properly takes into account the outstanding receivables, no additional imputation of interest on the same is warranted. As AR submitted that the working capital adjustment is worked out by properly taking into account the outstanding receivables. However from the order of the TPO, we do not find any mention of the Ld. TPO considering the same. We are, therefore, of the opinion that this fact needs verification at the end of the TPO - we set aside the issue to the file of TPO for verification of the fact, whether while making the working capital adjustment the outstanding receivables are taken into account or not. Appeal of the assessee is allowed for statistical purposes.
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