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2020 (7) TMI 282 - AT - Income TaxTP Adjustment - interest due on outstanding receivable from Associate Enterprises - ALP adjustment u/s. 92C(3) towards Interest @ 7% on Outstanding Receivables from AEs on hypothetical and notional basis - HELD THAT:- The assessee during the year under consideration had not availed any loan from AEs or unrelated third parties and was not incurring any interest cost. The agreement between the assessee and its AE vis-à-vis terms of payment within stipulated period of 90 days cannot form basis for holding the existence of International transaction between assessee and its AE, where outstanding is not received within stipulated period. Such is the proposition laid down in Pr. CIT-V vs Kusum Health Care Pvt.Ltd. [2017 (4) TMI 1254 - DELHI HIGH COURT] especially where working capital adjustment has been allowed to assessee. In any case, the credit period of 90 days is less than credit period of 90 to 120 days of comparables and no adjustment is warranted. In such facts and circumstances and following the ratio laid down by the Hon’ble Delhi high Court in Kusum Healthcare Ltd. (supra) and also in line with the findings of the Tribunal in M/s. Global Logic India Ltd. [2017 (12) TMI 1052 - ITAT DELHI] we find no merit in making any adjustment on account of interest due on receivable from its AE. - Decided in favour of assessee.
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