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2021 (9) TMI 975 - AT - Income TaxTP Adjustment - adjustment of outstanding receivables from AEs - HELD THAT:- We find that the Tribunal in the case of assessee itself for Assessment Year 2010-11 [2019 (7) TMI 1663 - ITAT DELHI] interest of credit period granted by the company under normal trade practices was unjustly charged, having heard both the counsel, we are of the considered opinion that if working capital adjustment is granted, then no separate adjustment or interest receivables is required. We do not see any reason to deviate from the decision rendered in the earlier years. The Assessing Officer is directed accordingly. The Ground of appeal No.2 raised by the assessee is thus, allowed. TDS U/S 195 - reimbursement of relocation expenses form part of secondment contract - Addition u/s 40(a)(i) - Reference to make available clause in terms of India US DTAA - AO treated the same in the nature of FTS and thus chargeable to tax u/s 9(1)(vii) and Article 12(4) of the DTAA between India and USA - HELD THAT:-.CIT(A) confirmed the view of the Assessing Officer by relying on the decision of Centrica Offshore Pvt.Ltd.[2014 (5) TMI 154 - DELHI HIGH COURT] - As contended by assessee that as per India US DTAA, the make available clause is not satisfied in the present case. Therefore, the reimbursement cannot be characterized as FTS. We find that this aspect has not been examined by Ld.CIT(A), therefore, the finding of Ld.CIT(A) is set aside and this issue is restored to Ld.CIT(A) to decide it afresh after having considered the submissions of the assessee regarding make available clause in terms of India US DTAA. Thus, Ground No.3 raised in the assessee’s appeal is partly allowed for statistical purposes. Allowability of education cess as a deduction u/s 37(1) - HELD THAT:- Respectfully following the judgement of Hon’ble Bombay High Court in the case of Sesa Goa Ltd. vs JCIT [2020 (3) TMI 347 - BOMBAY HIGH COURT] we direct the Assessing Officer to delete the addition. Thus, additional grounds raised by the assessee are allowed. Allowability of working capital adjustment - HELD THAT:- Since this issue, we have decided in favour of the assessee by following the judgement of Kusum Healthcare Pvt.Ltd [2017 (4) TMI 1254 - DELHI HIGH COURT] and also the decision of Tribunal in earlier years. Therefore, we do not see any infirmity in the finding of Ld.CIT(A) and the same is hereby affirmed. Allowance of payment of travelling expenses - HELD THAT:- Payment of travelling expenses to its own employee could not fall within the ambit of FTS.
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