Avenue Asia Advisors Pvt. Ltd. v. DCIT

398 ITR 120High Court2017#1358 most cited

What is Avenue Asia Advisors Pvt. Ltd. v. DCIT authority for?

The Delhi High Court holds that a detailed functional and working capital analysis, considering various factors, is essential before treating outstanding receivables as a separate international transaction for transfer pricing adjustments on notional interest. Simply making an adjustment based on receivables alone without such study distorts the transaction's character.

84

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2025.

Also referred to as

Avenue Asia Advisors Pvt. Ltd. v. DCIT · 398 ITR 120 · Section 92B · Section 92CA · transfer pricing adjustment · interest on outstanding receivables · international transaction · working capital adjustment · functional analysis · comparable companies · Kusum Healthcare · TP adjustment on receivables

Sections most often in play

Section 143(3)Section 144C(13)Section 92BSection 144BSection 115JBSection 92CASection 10DSection 14A

Issues it is cited on

interest on outstanding receivablessection 92b(1)captive service providerworking capital adjustmentsection 92bmultiple year datarelated party transactionfunctional analysiscomparable companiestransfer pricing ordertransactional net margin methodassociated enterprises

Judgments citing Avenue Asia Advisors Pvt. Ltd. v. DCIT

DCIT Circle 1(1), New Delhi vs. Acme Tele Power Ltd. (Now Known As Acme Cleantech Solution Ltd.), New Delhi

In the result, appeal of the Revenue is dismissed

ITA 1074/DEL/2023[2010-11]Status: DisposedITAT Delhi20 Nov 2025AY 2010-11

Bench: Shri Sudhir Pareek & Shri Manish Agarwal[Assessment Year : 2011-12] M/S. Acme Cleantech Solutions Vs Dcit, Ltd., C/O-M/S. Rra Taxindia, Circle-1(2) D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] M/S. Acme Cleantech Solutions Vs Addl.Cit, Ltd., C/O-M/S. Rra Taxindia, Range-1 D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs M/S. Acme Tele Power Ltd. Circle-1(1) [Now, Known As M/S. Acme New Delhi Cleantech Solutions Ltd.] C/O-M/S. Rra Taxindia, D-28, South Extension, Part-1, New Delhi-110049 Pan-Aaeca0914A Appellant Respondent

Section 143(3)Section 144C(13)Section 14ASection 92BSection 92C

…ent only on the basis of the outstanding receivables would have distorted the picture and re-characterized the transaction.” 19. This view is further confirmed by the Hon’ble Delhi High Court in the case of Avenue Asia Advisors Pvt. Ltd. vs. DCIT reported in 398 ITR 120 (Delhi). 20. In view of the above discussion and by respectfully following the aforesaid orders of hon’ble jurisdictional high court in the case of Kusum Healthcare (supra) and others we direct the AO to delete the addition made on account of transfer price adjustments towards interest on outstanding receivable. The grounds of appeal No. 4 & 5 o…

M/S. Acme Cleantech Solutions Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 3641/DEL/2017[2011-12]Status: DisposedITAT Delhi20 Nov 2025AY 2011-12

Bench: Shri Sudhir Pareek & Shri Manish Agarwal[Assessment Year : 2011-12] M/S. Acme Cleantech Solutions Vs Dcit, Ltd., C/O-M/S. Rra Taxindia, Circle-1(2) D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] M/S. Acme Cleantech Solutions Vs Addl.Cit, Ltd., C/O-M/S. Rra Taxindia, Range-1 D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs M/S. Acme Tele Power Ltd. Circle-1(1) [Now, Known As M/S. Acme New Delhi Cleantech Solutions Ltd.] C/O-M/S. Rra Taxindia, D-28, South Extension, Part-1, New Delhi-110049 Pan-Aaeca0914A Appellant Respondent

Section 143(3)Section 144C(13)Section 14ASection 92BSection 92C

…ent only on the basis of the outstanding receivables would have distorted the picture and re-characterized the transaction.” 19. This view is further confirmed by the Hon’ble Delhi High Court in the case of Avenue Asia Advisors Pvt. Ltd. vs. DCIT reported in 398 ITR 120 (Delhi). 20. In view of the above discussion and by respectfully following the aforesaid orders of hon’ble jurisdictional high court in the case of Kusum Healthcare (supra) and others we direct the AO to delete the addition made on account of transfer price adjustments towards interest on outstanding receivable. The grounds of appeal No. 4 & 5 o…

M/S. Acme Cleantech Solutions Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 4478/DEL/2016[2010-11]Status: DisposedITAT Delhi20 Nov 2025AY 2010-11

Bench: Shri Sudhir Pareek & Shri Manish Agarwal[Assessment Year : 2011-12] M/S. Acme Cleantech Solutions Vs Dcit, Ltd., C/O-M/S. Rra Taxindia, Circle-1(2) D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] M/S. Acme Cleantech Solutions Vs Addl.Cit, Ltd., C/O-M/S. Rra Taxindia, Range-1 D-28, South Extension, Part-1, New Delhi New Delhi-110049 Pan-Aaeca0914A Appellant Respondent [Assessment Year : 2010-11] Dcit, Vs M/S. Acme Tele Power Ltd. Circle-1(1) [Now, Known As M/S. Acme New Delhi Cleantech Solutions Ltd.] C/O-M/S. Rra Taxindia, D-28, South Extension, Part-1, New Delhi-110049 Pan-Aaeca0914A Appellant Respondent

Section 143(3)Section 144C(13)Section 14ASection 92BSection 92C

…ent only on the basis of the outstanding receivables would have distorted the picture and re-characterized the transaction.” 19. This view is further confirmed by the Hon’ble Delhi High Court in the case of Avenue Asia Advisors Pvt. Ltd. vs. DCIT reported in 398 ITR 120 (Delhi). 20. In view of the above discussion and by respectfully following the aforesaid orders of hon’ble jurisdictional high court in the case of Kusum Healthcare (supra) and others we direct the AO to delete the addition made on account of transfer price adjustments towards interest on outstanding receivable. The grounds of appeal No. 4 & 5 o…

Ab Inbev Gcc Services India Private Limited, Bangalore, Karnataka vs. Assistant Commissioner of Income Tax, Circle-1(1)(1), Bangalore

In the result, appeal is allowed for statistical purposes

ITA 1635/BANG/2024[2020-21]Status: DisposedITAT Bangalore13 May 2025AY 2020-21

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubeyit(It)A No.1635/Bang/2024 Assessment Year :2020-21

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bangalore
Section 143(3)Section 144BSection 153Section 92B

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon’ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon’ble Hig…

Varian Medical Systems International (India) Private Limited, Mumbai vs. Assistant Commissioner /Dy. Commissioner of Income Tax Circle 3(3)(1), Mumbai

In the result the appeal filed by the assessee in ITA No

ITA 5086/MUM/2024[2020-21]Status: DisposedITAT Mumbai28 Feb 2025AY 2020-21

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 143(3)Section 144BSection 144CSection 144C(13)Section 92D

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Varian Medical Systems International (India) Private Limited, Mumbai vs. Assistant, Deputy Commissioner of Income Tax, Mumbai

In the result the appeal filed by the assessee in ITA No

ITA 5060/MUM/2024[2020-21]Status: DisposedITAT Mumbai28 Feb 2025AY 2020-21

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 143(3)Section 144BSection 144CSection 144C(13)Section 92D

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Goodyear India Ltd., Faridabad vs. DCIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 346/DEL/2022[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR
Section 143(3)Section 144BSection 144CSection 92B

…contended that, the delay in receipt of receivable is not a separate international transaction and relied on the decision made in Principal CIT Vs. Kusum Healthcare Pvt. Ltd. (ITA No. 765/Del/2016) and the Avenue Asia Advisors Pvt. Ltd. Vs DCIT reported at 398 ITR 120, further submitted that, the interest cost has already been suitably factored in the sale price, wherein the Assessee’s margin is 6.36% and a comparable margin is between 4.032 5.93%. The Ld. Counsel for the assessee has also relied on Kusum Health Care Pvt. Ltd. Vs. ACIT in ITA No. 6814/Del/2014 and Pr. CIT Vs. Inductis India Pvt. Ltd. ITA…

Goodyear India Ltd, Faridabad vs. ACIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1451/DEL/2022[2018-19]Status: DisposedITAT Delhi26 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR
Section 143(3)Section 144BSection 144CSection 92B

…contended that, the delay in receipt of receivable is not a separate international transaction and relied on the decision made in Principal CIT Vs. Kusum Healthcare Pvt. Ltd. (ITA No. 765/Del/2016) and the Avenue Asia Advisors Pvt. Ltd. Vs DCIT reported at 398 ITR 120, further submitted that, the interest cost has already been suitably factored in the sale price, wherein the Assessee’s margin is 6.36% and a comparable margin is between 4.032 5.93%. The Ld. Counsel for the assessee has also relied on Kusum Health Care Pvt. Ltd. Vs. ACIT in ITA No. 6814/Del/2014 and Pr. CIT Vs. Inductis India Pvt. Ltd. ITA…

Inmobi Technology Services Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle3(1)(1), Bangalore

In the result appeals filed by assessee for AY

ITA 303/BANG/2022[2017-18]Status: DisposedITAT Bangalore11 Jun 2024AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A Nos. 303 & 839/Bang/2022

For Appellant: Shri Chaitanya, Sr. Advocate a/wFor Respondent: Ms. Neera Malhotra, CIT-DR
Section 143(2)Section 143(3)Section 92C

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

JCIT, New Delhi vs. M/S. Daawat Foods Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed as indicated above and the appeal of the Revenue is dismissed

ITA 2387/DEL/2017[2010-11]Status: DisposedITAT Delhi04 May 2023AY 2010-11

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

For Appellant: Ms. Deepashree Rao, C.A
Section 10Section 14A

…21,05,962/-. Before us, the learned counsel placed strong reliance on the decision of the Hon'ble jurisdictional High Court of Delhi in the case of Kusum Healthcare Limited ITA No. 765/2016 and also relied upon the decision in the case of Avenue Asia Advisors 398 ITR 120. 44. The learned counsel further pointed out that interest cost has also been suitably factored in sale price as operating profit 17 Cross I.T.A. Nos. 1758 & 2387/Del/2017 margin of the assessee is much higher than operating margin of the comparable companies. 45. The ld. counsel for the assessee further stated that the assessee is also in rece…

Dawat Foods Ltd., Gurgaon vs. ACIT, New Delhi

In the result, the appeal of the assessee is partly allowed as indicated above and the appeal of the Revenue is dismissed

ITA 1758/DEL/2017[2010-11]Status: DisposedITAT Delhi04 May 2023AY 2010-11

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

For Appellant: Ms. Deepashree Rao, C.A
Section 10Section 14A

…21,05,962/-. Before us, the learned counsel placed strong reliance on the decision of the Hon'ble jurisdictional High Court of Delhi in the case of Kusum Healthcare Limited ITA No. 765/2016 and also relied upon the decision in the case of Avenue Asia Advisors 398 ITR 120. 44. The learned counsel further pointed out that interest cost has also been suitably factored in sale price as operating profit 17 Cross I.T.A. Nos. 1758 & 2387/Del/2017 margin of the assessee is much higher than operating margin of the comparable companies. 45. The ld. counsel for the assessee further stated that the assessee is also in rece…

Atos It Services Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-1(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed

ITA 294/BANG/2022[2017-18]Status: DisposedITAT Bangalore27 Mar 2023AY 2017-18
For Respondent: Shri Dhanesh Bafna, CA &
Section 143Section 143(3)Section 144C(13)Section 92BSection 92CSection 92D

…eded that outstanding amount on account of sales/services billed to AE akin to loan advanced by assessee is an international transaction. As held by the Hon'ble Delhi High Court in the case of Avenue Asia Business Advisors (P.) Ltd. v. DCIT reported in [2017] 398 ITR 120, there should be TP adjustment on this count after making proper TP study by the TPO after considering the period of credit enjoyed by the Page 24 IT(TP)A No. 294/Bang/2022 comparables and also applicable LIBOR rate in the place of AEs for benchmarking the rate of interest to arrive at the ALP. With these observations, we remit the issue in disp…

Mavenir Systems Private Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle-4(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed

ITA 453/BANG/2022[2017-18]Status: DisposedITAT Bangalore23 Mar 2023AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuit(Tp)A No. 453/Bang/2022 Assessment Year : 2017-18 M/S. Mavenir Systems Pvt. Ltd., Building Beach E1 2Nd Floor, The Deputy Manyata Embassy Business Commissioner Of Park, Income Tax, Outer Ring Road Hebbal Kr Circle – 4 (1)(1), Puram Section, Vs. Bangalore. Bengaluru – 560 045. Pan: Aaecm9663N Appellant Respondent : Smt. Tanmayee Rajkumar, Assessee By Advocate : Dr. Manjunath Karkihalli, Revenue By Cit Dr Date Of Hearing : 05-01-2023 Date Of Pronouncement : 23-03-2023 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 29.04.2022 Passed By The Ld.Dcit, Circle 4(1)(1), Bangalore For A.Y. 2017-18. The Ld.Ar Has Relied On The Specific Grounds Of Appeal Filed Before This Tribunal Which Are As Under:

For Respondent: Smt. Tanmayee Rajkumar

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Quest Global Engineering Services Private :Limited, Belagavi vs. Assistant Commissioner of Income Tax, Circle-2, Belagavi

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 279/BANG/2022[2017-18]Status: DisposedITAT Bangalore13 Mar 2023AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuit(Tp)A No.279/Bang/2022 Assessment Year : 2017-18

For Appellant: Shri Ankur Pai, A.RFor Respondent: Shri Manjunath Karkihalli, D.R
Section 92C

…fairly conceded that outstanding amount on account of sales/services billed to AE akin to loan advanced by assessee is an international transaction. As held by the Hon'ble Delhi High Court in the case of Avenue Asia Business Advisors (P.) Ltd. v. DCIT [2017] 398 ITR 120 (Del), there should be TP adjustment on this count after making proper TP study by the TPO after considering the period of credit enjoyed by the comparables and also applicable LIBOR rate in the place of AEs for benchmarking the rate i of interest to arrive at the ALP. With these observations, we remit the issue in dispute to the file of AO/TPO t…

Apache Footwear India Private Limited, Nellore vs. ACIT, Circle-1(1), Tirupati

In the result, the appeal of the assessee is dismissed

ITA 568/HYD/2022[2018-19]Status: DisposedITAT Hyderabad16 Jan 2023AY 2018-19

Bench: Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Shri Kuriachan, CAFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 144CSection 270A

…ould take care of such notional interest cost. 16. The Hon'ble ITAT, Chandigarh Bench 'A', in the case of Glaxo Smithkline Asia Pvt Ltd [TS-543-ITAT-2021(Chandi)-TP] by following the latest judgement by the Delhi High Court in the case of Avenue Asia Pvt Ltd 398 ITR 120 (Delhi) held that for characterizing the receivables as international transactions, the same could not have been done automatically and the TPO ideally should have studied the pattern in the accounts of the assessee regarding recovery of the amounts receivables and determined from the same thereafter whether the same reflected a pattern indicatin…

M/S. Applied Materials India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 1(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed

ITA 2582/BANG/2019[2015-16]Status: DisposedITAT Bangalore30 Dec 2022AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri T. Suryanarayana

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Applied Materials India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-1(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed

ITA 209/BANG/2021[2016-17]Status: DisposedITAT Bangalore30 Nov 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 209/Bang/2021 Assessment Year : 2016-17 M/S. Applied Materials India Pvt. Ltd., Unit -5, 3Rd Floor, The Deputy Explorer Building, Commissioner Of International Tech Income Tax, Park, Circle – 1(1)(1), Whitefield Road, Vs. Bangalore. Bangalore – 560 001. Pan: Aaeca2635C Appellant Respondent : Shri T. Suryanarayana, Assessee By Advocate : Dr. Manjunath Karkihalli, Revenue By Cit-Dr Date Of Hearing : 30-11-2022 Date Of Pronouncement : 30-11-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Order Dated 31/03/2021 Passed By The National E-Assessment Centre, Delhi For A.Y. 2016-17 On Following Grounds Of Appeal:

For Respondent: Shri T. Suryanarayana
Section 143(1)Section 143(2)Section 195Section 40Section 92C

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Finastra Software Solutions (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 268/BANG/2021[2016-17]Status: DisposedITAT Bangalore28 Nov 2022AY 2016-17

Bench: Shri George George K. & Ms. Padmavathy S.It(Tp)A No. 268/Bang/2021 (Assessment Year: 2016-17)

For Appellant: Shri T. Suryanarayana, AdvFor Respondent: Shri Manjunath Karkihalli, CIT-DR
Section 143(3)Section 80G

…ion intended to benefit the AE in some way. Similar matter once again came up for 31 IT(TP)A No. 268/Bang/2021 M/s. Finastra Software Solutions (India) Pvt. Ltd. consideration before the Hon'ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd v. DCIT [2017] 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon'ble Hig…

Global Logic India Limited, Delhi vs. DCIT Tpo-2(1)(1), Delhi

In the result the appeal of the assessee is allowed

ITA 370/DEL/2022[2017-18]Status: DisposedITAT Delhi23 Nov 2022AY 2017-18

Bench: Shri Shamim Yahya & Ms. Astha Chandraassessment Year: 2017-18

For Appellant: Shri Neeraj Jain, AdvocateFor Respondent: Shri Mahesh Shah, CIT(DR)
Section 143(3)Section 92C

…receivables for the supplies made to an AE, the arrangement reflects an international transaction intended to benefit the AE in some way. It was held similarly by the Hon’ble Delhi High Court in the case of Avenue Asia Advisors Pvt. Ltd. vs. DCIT reported at 398 ITR 120, wherein, the High Court too held that: “On the question of notional interest, it was incorrect on the part of the Income- tax Appellate Tribunal to hold that the entire outstanding receivables constitute an international transaction. The reliance by the assessee on the decision of court dated April 25, 2017 in I. I.A. 765 of 2016 (Principle CIT…

Ab Inbev Gcc Services India Private Limited (Earlier Known As Gcc Services India Private Limited), Bangalore vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee stands partly allowed as indicated hereinabove

ITA 290/BANG/2022[2017-18]Status: DisposedITAT Bangalore14 Nov 2022AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuit(Tp)A No. 290/Bang/2022 Assessment Year : 2017-18 M/S. Ab Inbev Gcc Services India Pvt. Ltd., (Earlier Known As Gcc Services India Pvt. Ltd.), The Deputy 12Th & 13Th Floor, Commissioner Of Peridot Block, Bagmane Income Tax, World Technology Centre Circle 3(1)(1), Sez, Vs. Bangalore. Marthalli Road, Kr Puram, Bangalore – 560 048. Pan: Aafcg8223M Appellant Respondent Assessee By : Shri Chavali Narayan, Ca : Dr. Manjunath Karkihalli, Revenue By Cit-Dr Date Of Hearing : 20-09-2022 Date Of Pronouncement : 14-11-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Passed By The Nfac, Delhi Dated 21/02/2022 For A.Y. 2017-18 On Following Grounds Of Appeal:

For Appellant: Shri Chavali Narayan, CA
Section 115JSection 143(1)Section 244ASection 270ASection 92B

…he supplies made to an AE, the arrangement reflected an international transaction intended to benefit the AE in some way. Similar matter once again came up for consideration before the Hon’ble Delhi High Court in Avenue Asia Advisors Pvt. Ltd. vs. DCIT (2017) 398 ITR 120 (Del). Following the earlier decision in Kusum Healthcare (supra), it was observed that there are several factors which need to be considered before holding that every receivable is an international transaction and it requires an assessment on the working capital of the assessee. Applying the decision in Kusum Health Care (supra), the Hon’ble Hig…