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2018 (3) TMI 65 - AT - Income TaxTransfer pricing - Adjustment to the income of the assessee on account of interest on receivables - Not charging interest from A.Es and non-A.Es - Held that:- All international transactions were accepted by the TPO to be at arm’s length, except, payment of interest on loan. The authorities below have treated the delayed payment beyond 30 days as loans. In fact, no loan have been extended by the assessee. It was the amount ‘due’ against the A.Es. as well as non-A.E. on which interest have been charged by considering the deemed loans. Therefore, the decision of ITAT, Delhi Bench in the case of M/s. Kusum Healthcare Pvt. Ltd., (2015 (4) TMI 180 - ITAT DELHI), squarely apply in the case of the assessee, since the assessee earned significantly higher margin than the comparable companies, which have been accepted by the TPO, therefore, there was no justification to charge interest on outstandings. The assessee also explained that there are similar delays in collection of outstanding receivables from both A.Es and non-A.Es which is due to business and commercial reasons. Therefore, there is uniformity in act of assessee in not charging interest from A.Es and non-A.Es. Considering the nature of business of assessee and the facts explained above, we are of the view that there was no justification for the authorities below to make adjustment to the income declared by assessee. Adjustment to the income of the assessee is wholly unjustified on account of interest on receivables - Decided in favour of assessee
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