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2023 (11) TMI 47 - HC - Income TaxTP Adjustment - comparable selection - HELD THAT:- Infobeans Technologies Ltd rejected on functional dissimilarity between the assessee and Infobeans, the said comparable. Cybercom is the business of providing technical services. Based on this finding, the Tribunal has excluded Cybercom as a comparable. Infosys BPO is a riskbearing entity having diversified activities. The respondent/assessee, on the other hand, which has a turnover of only Rs. 96 crores in the BPO sector and hence cannot be compared. Clearly, the findings returned by the Tribunal above for each comparable are findings of fact, and that no question is proposed by the appellant/revenue that the findings are perverse. Therefore, in our view, Infobeans, Cybercom and Infosys were rightly rejected as comparables. Adjustment on account of interest on receivables - as argued by assessee that once working capital adjustment is allowed, then no adjustment on account of interest on receivables is required to be made - HELD THAT:- Tribunal has noted the assertions made on behalf of the respondent/assessee that it permitted a ninety (90) days credit period. On behalf of the appellant/assessee, it had been emphasized that once the credit period exceeded ninety (90) days, interest had to be charged. It is on this account that adjustment was ordered with regard to the receivables. Tribunal has relied upon its decision [2021 (11) TMI 1148 - ITAT DELHI] and concluded that the said issue needed to be restored to the Assessing Officer (AO) for verifying the respondent/assessee’s claim, keeping in view its aforementioned decision, albeit, after providing reasonable opportunity of hearing to the respondent/assessee. 20. In our view, on this score as well, no interference is called for with the order of the Tribunal. Also in support of her submission that once working capital adjustment is made, no further adjustment is required to be made on account of interest received on receivables has correctly relied upon the judgment of Kusum Health Care Pvt. Ltd. [2017 (4) TMI 1254 - DELHI HIGH COURT] as held with the Assessee having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-à-vis that of its comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and re-characterised the transaction. No substantial question of law arises
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