TMI Blog2018 (12) TMI 1930X X X X Extracts X X X X X X X X Extracts X X X X ..... nt company is higher than that of the comparables. The ratio laid down by the Tribunal in the case of Kusum Healthcare Pvt Ltd [ 2015 (4) TMI 180 - ITAT DELHI] also affirmed by HC [ 2017 (4) TMI 1254 - DELHI HIGH COURT] squarely applies DR pointed out that the Revenue has preferred SLP before the Hon'ble Supreme Court against the judgment of the Hon'ble High Court of Delhi. In our understanding, since the operation of the judgment of the Hon'ble High Court is not stayed by the Hon'ble Supreme Court, the same is binding on us and, therefore, respectfully following the decision of the coordinate bench, affirmed by the Hon'ble High Court [supra] we direct the Assessing Officer/TPO to delete the addition - Decided in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Technology enabled network management / technical support and other back-office support services to its Group Company. It also undertakes software development services for developing software applications which are used within the Orange Group. 5. The international transactions reported by the assessee during the year in Form 3CEB report is as under: Sl. No. Description of the transaction Amount [INR 1. Provisions of information and technology services 2,48,87,11,426/- 2. Cost recharges 2,22,89,684/- 3. Receivables [as on 31.03.2014] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DRP final addition was made at ₹ 1,45,27,731/-. 9. Aggrieved by this the assessee is before us. 10. It is the say of the ld. AR that interest on receivables is not an international transaction as the interest proposed to be charged, if any, is already built in the sale price and thus no interest needs to be computed on the outstanding receivables from the AEs. The ld. AR further pointed out that the operating profit margin has not been disturbed by the Assessing Officer/TPO. Therefore, no separate adjustment is to be made in so far as outstanding receivables are concerned. 11. Per contra, the ld. DR supported the findings of the DRP. It is the say of the ld. DR that the objections raised by the assessee have been duly cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the assessee. It ordered accordingly. 13. This decision of the coordinate bench has been affirmed by the Hon'ble High Court of Delhi in ITA No. 765/2016 vide order dated 24.04.2017. The relevant findings of the Hon'ble High Court read as under: 11. The court finds that the entire focus of the AO was on just one AY and of receivables in relation to that AY can hardly reflect a pattern that would justify a TPO concluding that the figure of receivables beyond 180 days constitutes an international transaction by itself. With the Assessee having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-avis that of its comparables, any further adjustment only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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