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2017 (9) TMI 1578 - AT - Income TaxTPA - international transaction - Adjustment u/s 92CA(3) - interest on delay in recovering the outstanding trade receivables from the AE - Held that:- No adjustment can be made on account of interest on receivables on credit granted by the Indian Subsidiary to its foreign AE. Respectfully following the decisions cited above, we hold that the TPO is not justified in making adjustment of interest on account of alleged delay in recovering the outstanding toward receivables from the AE as per the provisions of section 92CA(3) of the I.T. Act.See Kusum Healthcare Pvt. Ltd. [2017 (4) TMI 1254 - DELHI HIGH COURT]. The first issue raised by the assessee in the grounds of appeal is accordingly allowed. Dividend distribution tax - taking the surcharge @ 10% instead of 7.5% on final dividend declared in June 2010 - Held that:- The issue is restored to the file of the Assessing Officer with the direction to apply correct surcharge as per law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The additional ground raised by the assessee is allowed for statistical purposes.
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