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2022 (10) TMI 498 - HC - Income TaxTP Adjustment on account of receivables - substantial question of law - HELD THAT:- As decided in Bechtel India Pvt. Ltd. [2015 (12) TMI 1560 - ITAT DELHI] assessee is a debt free company. In such circumstances it is not justifiable to presume that, borrowed funds have been utilized to pass on the facility to its AE’s. The revenue has also not brought on record that the assessee has been found paying interest to its creditors or suppliers on delayed payments. Disallowance under Section 40(a)(ia) - This Court finds that there is no dispute that the assessee has deducted tax at source under Section 192 of the Act. This Court is in agreement with the opinion of the ITAT that Section 195 of the Act has no application once the nature of payment is determined as salary and deduction has been made under Section 192 of the Act. This Court is further of the view that the judgment in Centrica India Offshore Pvt. Ltd [2014 (5) TMI 154 - DELHI HIGH COURT] has no application to the present case as the ITAT has returned a finding that the real employer of the seconded employees continues to be the Indian entity and not the overseas entity. Consequently, this Court is of the view that the issues of ‘receivables’ as well as ‘disallowance’ under Section 40(a)(ia) of the Act are essentially questions of fact, which give rise to no substantial questions of law especially when the findings of the ITAT are not perverse. Draft order framed u/s 144(c)(1) of the Act is in the name of a non-existent company - Question No.1 is left open to be agitated in an appropriate matter.
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