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2023 (4) TMI 980 - ITAT DELHITP Adjustment with respect to receivables from the Associated Enterprises (AE) - International transaction - HELD THAT:- As decided in ORANGE BUSINESS SERVICES INDIA SOLUTIONS PVT. LTD., VERSUS. DCIT, CIRCLE-3, GURGAON [2022 (12) TMI 1070 - ITAT DELHI] in view of the sequence of events, it would be noted that the decision of Hon’ble Delhi High Court in the case of Kusum Healthcare [2017 (4) TMI 1254 - DELHI HIGH COURT] is still the binding precedent on the issue of interest on outstanding receivables as held that the inclusion in the Explanation to section 92B of the Act of the expression "receivables" does not mean that de hors the context every item of "receivables" appearing in the accounts of an entity, which may have dealings with foreign AEs would automatically be characterized as an international transaction and (ii) With the Assessee having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-a-vis that of its comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and recharacterized the transaction. Needless to mention that the law laid down by the Hon'ble High Court in the case of Kusum Healthcare was followed by the ITAT in case of Global Logic India Ltd. v. Dy. CIT [2017 (12) TMI 1052 - ITAT DELHI], [2020 (6) TMI 712 - ITAT DELHI], [2021 (11) TMI 1090 - ITAT DELHI] - Hence, keeping in view, the established position, we hereby deleted the addition made by the Assessing Officer. Appeals of the assessee are allowed.
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