TECHNIP INDIA LIMITED,NEW DELHI vs. ACIT, SPL RANGE-9, NEW DELHI

ITA 9852/DEL/2019Status: DisposedITAT Delhi17 September 2025AY 2015-16Bench: SHRI S RIFAUR RAHMAN (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that no transfer pricing adjustment could be made on account of interest on outstanding receivables if the assessee's margin was higher than comparable companies and if the assessee neither charged nor paid interest in its normal business operations. The arbitrary addition of a mark-up to the LIBOR rate was also deemed unjustified.

What were the facts?

The assessee, engaged in engineering and consultancy, had international transactions with associated enterprises, leading to transfer pricing adjustments on outstanding receivables. The Assessing Officer (AO) and Dispute Resolution Panel (DRP) made additions based on the Transfer Pricing Officer's (TPO) findings.

What were the issues?

Whether outstanding receivables from associated enterprises constitute an international transaction warranting transfer pricing adjustment, and if so, whether the method and rate used for imputation of interest were justified.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 92B,Section 92C,Section 90,Section 90A

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Income Tax Appellate Tribunal, DELHI BENCH “I”: NEW DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Appellant: Shri Vishal Kalra, Adv., Shri Yishu Goel, Shri Anil Kumar, Adv
For Respondent: Shri Dharm Veer Singh, CIT (DR)
Hearing: 31.07.2025Pronounced: 17.09.2025

Heard together (2 matters)

ITA No. 6390/DEL/2017
ITA No. 9852/DEL/2019

Read from the judgment's own cause title. This page is filed under one of them.

PER VIMAL KUMAR, JUDICIAL MEMBER:

The appeals of assessee are against assessment orders dated 30.08.2017 and 29.01.2019 of the Learned Additional Commissioner of Income-Tax, Special Range-9, Delhi (hereinafter referred as “the Ld. AO”) under Sections 143 read with section 144C(13) of the Income Tax Act, 1961 ( hereinafter referred as “the Act”) for assessment years 2013-14 and 2015-16 respectively. In ITA No.9852/Del/2019 challenge is also to order dated 31.10.2019 of ITA No.6390/Del/2017 & Learned Commissione

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