TMI Blog2019 (8) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... ssisting basing on the decision of Kusum HealthcarePvt.Ltd. [ 2017 (4) TMI 1254 - DELHI HIGH COURT] It is the settled principle of law, after the decision of Kusum Healthcare Pvt.Ltd. (supra), that in TNMM, the net margin earned was exposed with appropriate working capital adjustment to comparable companies; that the receivable mentioned in the Explanation to Sec.92B can be taken up for transfer pricing scrutiny only when it is a standalone activity or a demonstrated approach is adopted by the assessee to use Accounts Receivable to have free working capital funding; and that if the impact of extended credit period on working capital was factored in the pricing / profitability, then there is no tax leakage or evasive tactics adopted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ox-bottom bags, insulated bags, handstrung shoulder totes, draw cord bags, duffle bags, rope handle bags with a turnover tops having cardboard inserts and other custom strung bags. For the assessment year 2011- 12, they have filed their return of income on 21/09/2011 showing NIL income. 3. During the year, the assessee entered into following international transactions:- (i) Export of finished goods (ii) Import of raw materials (iii) Import of spare parts (iv) Charge for cylinder cost (v) Loan conversion to the equity shares (vi) Issue of share capital. 4. The assessee had adopted Transactional Net Margin Method ( TNMM ) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne through the record in the light of the submissions made on either side. It remains an undisputed fact that the assessee had adopted TNMM method for determining the arm s length price for principal amount of exports to AE and it was duly accepted by the Ld. TPO. No adjustment under section 92 CA of the Act was suggested in respect of the price for their exports to AE. Ld. TPO had taken the notional interest on the outstanding receivables as a separate international transaction and suggested for the adjustment, which the assessee has been assisting basing on the decision of the Hon ble jurisdictional High Court in the case of Kusum HealthcarePvt.Ltd. (supra). 9. It is the settled principle of law, after the decision of the H ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
