TMI Blog2018 (1) TMI 1733X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional High Court in assessee s own case [ 2017 (4) TMI 1254 - DELHI HIGH COURT] for this same assessment year by holding that no error was found in the order of ITAT giving rise to any substantial question of law for a determination. We, therefore, hold that in case the working capital adjustment properly takes into account the outstanding receivables, no additional imputation of interest on the same is warranted. As AR submitted that the working capital adjustment is worked out by properly taking into account the outstanding receivables. However from the order of the TPO, we do not find any mention of the Ld. TPO considering the same. We are, therefore, of the opinion that this fact needs verification at the end of the TPO - we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ult of the benchmarking analysis undertaken by the Assessee is as follows :- International Transactions Profit level Indicator Gladpharm s Margin Comparable s Margin Export of Medicines Operating Profit/Sales ( OP/Sales ) 0.63% 4.15% 3. Since the operating profit margin of the tested party (namely Gladpharm) was lower than the comparable companies selected for benchmarking analysis, the international transactions were considered to be undertaken at ALP. The TPO accepted this transaction of the assessee to be at arm s length. However, during the course of proceedings the TPO noticed cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of receivables from AEs. He further submitted that for an earlier year i.e. assessment year 2010-11 such an issue was considered by the Tribunal in ITA no. 6814/Del/2014 and by order dated 31.5.2015, a coordinate bench of this Tribunal decided the issue in favour of the assessee. He further submitted that the Hon ble Jurisdictional High Court by order dated 25.4.2017 in ITA No. 765/2016 refused to interfere with the order of the ITAT holding that no substantial question of law arises out of the order of the ITAT for determination by Hon ble High Court. 6. Ld. DR relied upon the assessment order pursuant to the directions of the Ld. DRP. She submitted that when compared to the volume of transactions with the AEs at 88%, volume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the accounts of an entity, which may have dealings with the foreign AEs would be characterised as an international transaction. There may be a delay in collection of monies for supplies made, even beyond the agreed limit, due to a variety of facts which will have to be investigated on a case to case basis. Importantly, the impact this would have on the working capital of the assessee will have to be studied. In other words, there has to be a proper enquiry by the TPO by analysing the statistics over a period of time to discern a pattern which would indicate that vis-a-vis the receivables for the supplies made to an 80AE, the arrangement reflects an international transaction intended to benefit the AE in some way. 11. The Court fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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