TMI Blog2024 (1) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... rises as separate transaction in the light of s. 92E and directed the AO for appropriate transfer pricing adjustment towards interest on delayed payments from its AE s consistent with arm s length principles - HELD THAT:- We find merit in the plea of the assessee that the assessee being a foreign entity, the overdue receivables do not act detrimental to the Indian Transfer Pricing regulations and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KUMAR KEDIA, AM : The captioned appeal has been filed by the assessee is challenging the final assessment order passed under section 143(3) read with section 144C(13) of the Income-tax Act, 1961 pertaining to Assessment Year 2017-18, in pursuance to the directions of learned Dispute Resolution Panel (DRP). 2. As per the multiple grounds of appeal together with categorical assertions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to the Transfer Pricing Officer (TPO). Based on the order of TPO, the Assessing Officer embarked upon transfer pricing adjustment to the tune of Rs. 6,63,370/- being interest on delayed payments from its AE s adopting SBI base rate plus 300 basis points. The transfer pricing adjustment was thus worked out to the impugned amount of Rs. 6,63,370/-. 4. In the course of hearing, learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ld. Counsel thereafter submitted that similar credit policies have been extended to unconnected entities. No interest has been charged to third party customers. Further, such impact of overdue receivables has already been factored and is already subsumed in the working capital adjustment. To support such proposition, the learned Counsel referred to the judgment rendered by the Delhi High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) that once the working capital adjustment is given on account dues receivables, it ordinarily subsumes the interest on receivables and no separate benchmarking for it is needed. We thus direct the Assessing Officer to reverse and cancel the adjustment in question. 7. In the result, appeal of the assessee is allowed. Order was pronounced in the open court on 29.12.2023 - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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