Pr. CIT v. Kusum Health Care Pvt. Ltd.

398 ITR 66High Court2017#1107 most cited

What is Pr. CIT v. Kusum Health Care Pvt. Ltd. authority for?

Not every item of receivables appearing in the accounts of an entity dealing with foreign associated enterprises automatically constitutes an international transaction under Section 92B. A separate adjustment for interest on outstanding receivables is not permissible if the working capital adjustment has already factored in their impact.

100

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2026.

Also referred to as

Pr. CIT v. Kusum Health Care Pvt. Ltd. · Kusum Health Care · Section 92B · Section 92CA · interest on outstanding receivables · international transaction · transfer pricing adjustment · working capital adjustment · associated enterprises · receivables not international transaction · no further interest adjustment on receivables

Sections most often in play

Section 143(3)Section 144C(13)Section 92BSection 10AASection 143(2)Section 271(1)(c)Section 92CASection 92CA(3)

Issues it is cited on

interest on outstanding receivablessection 92b(1)working capital adjustmentcaptive service providersection 92bmultiple year datacomparable companiesmost appropriate methodtransfer pricing adjustmentassociated enterprisescost plus methodrelated party transaction

Judgments citing Pr. CIT v. Kusum Health Care Pvt. Ltd.

Lotus Labs Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-4(1)(1), Bangalore

In the result appeal filed by assessee stands partly allowed

ITA 2207/BANG/2017[2013-14]Status: DisposedITAT Bangalore13 May 2020AY 2013-14

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.2207/Bang/2017 Assessment Year : 2013 – 14

For Appellant: Shri. Chavli Narayan, CAFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 143Section 143(3)Section 144CSection 80

…are Pvt.Ltd vs. ACIT reported in (2015) 62 Taxmann.com 79, deleted addition by considering Page 8 of 16 IT(TP)A No.2207/Bang/2017 A. Y: 2013 – 14 the above principle, and subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. He also placed reliance upon decision of Delhi Tribunal in case of Bechtel India vs DCIT reported in (2016) 66 taxman.com 6 which subsequently upheld by Hon’able Delhi High Court vide order dated 21/07/16 in ITA No. 379/2016, also upheld b…

M/S. Metricstream Infotech (India) Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bangalore

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

ITA 2347/BANG/2019[2015-16]Status: DisposedITAT Bangalore24 Apr 2020AY 2015-16

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiit(Tp)A No.2347/Bang/2019 Assessment Year : 2015 – 16

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 133(6)Section 143(3)

…reliance on decision of Delhi Tribunal in Kusum Healthcare Pvt.Ltd vs. ACIT reported in (2015) 62 Taxmann.com 79, deleted addition by considering the above principle, and subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. He also placed reliance upon decision of Delhi Tribunal in case of Bechtel India vs DCIT reported in (2016) 66 taxman.com 6 which subsequently upheld by Hon’able Delhi High Court vide order dated 21/07/16 in ITA No. 379/2016, also upheld b…

DCIT, Bangalore vs. M/S Logica Pvt. Ltd., Bangalore

In the result appeal and cross objection filed by assessee stands allowed as indicated hereinabove

ITA 505/BANG/2016[2011-12]Status: DisposedITAT Bangalore30 Jan 2020AY 2011-12

Bench: Shri B.R.Baskaran, Am & Smt.Beena Pillai, Jm

For Appellant: Sri.T.Suryanarayana, AdvocateFor Respondent: Ms.Neera Malhotra, CIT-DR
Section 143Section 144C

…reliance on decision of Delhi Tribunal in Kusum Healthcare Pvt.Ltd vs. ACIT reported in (2015) 62 Taxmann.com 79, deleted addition by considering the above principle, and subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. He also placed reliance upon decision of Delhi Tribunal in case of Bechtel India vs DCIT reported in (2016) 66 taxman.com 6 which subsequently upheld by Hon’able Delhi High Court vide order dated 21/07/16 in ITA No. 379/2016, also upheld b…

Turner International India Pvt. Ltd., New Delhi vs. ACIT, Circle- 25(2), New Delhi

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

ITA 5377/DEL/2017[2013-14]Status: DisposedITAT Delhi08 Jan 2020AY 2013-14

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year : 2013-14 Turner International India Pvt. Ltd., Vs Acit, 5Th Floor, Radisson Commercial Plaza, Circle-25(2), Nh-8, Mahipalpur, New Delhi. New Delhi. Pan: Aaact3821H (Appellant) (Respondent) Assessee By : Shri Ravi Sharma, Advocate Revenue By : Shri H.K. Choudhary, Cit, Dr Date Of Hearing : 21.10.2019 Date Of Pronouncement : 08.01.2020 Order Per R.K. Panda, Am:-

For Appellant: Shri Ravi Sharma, AdvocateFor Respondent: Shri H.K. Choudhary, CIT, DR
Section 143(3)Section 144C

…he working capital adjustment subsumes the impact of outstanding receivables and payables by the assessee and in support of this contention, he had relied upon the decision of Hon'ble Delhi High Court in the case of PCIT vs. Kusum Healthcare Pvt. Ltd., (2017) 398 ITR 66. 17. We agree with the contention of the learned counsel that if working capital adjustment is to be given, then it subsumes the impact of outstanding 18 receivables and payables made by the assessee and accordingly respectfully following the judgment of Hon'ble Delhi High Court, we hold that no adjustment is warranted on account of interest on re…

Samsung India Electronics Pvt. Ltd., Gurgaon vs. Addl. CIT., Special Range -8, New Delhi

In the result, the appeal of the assessee is allowed

ITA 6813/DEL/2017[2012-13]Status: DisposedITAT Delhi07 Jan 2020AY 2012-13

Bench: Ms. Sushma Chowladr. B. R. R. Kumarita No. 6813/Del/2017 : Asstt. Year : 2012-13 Samsung India Electronics Pvt. Ltd. Vs Additional Commissioner Of 20Th -24Th Floors, Dlf Two Horizon Income Tax, Special Range-8 Center, Sector-13, Gurgaon, New Delhi-110002 Haryana-122002 (Appellant) (Respondent) Pan No. Aaacs5123K Assessee By : Sh. Himanshu Sinha, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr & Date Of Hearing: 04.12.2019 Date Of Pronouncement: 07.01.2020

For Appellant: Sh. Himanshu Sinha, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR &
Section 144CSection 144C(10)Section 92C

…nion on the issue and kept the reasoning open for debate in an appropriate case. Hence, this case 20 Samsung India Electronics Pvt. Ltd. cannot be considered as the law laid down. Further, the reliance laid down by the ld. AR in the case of Kusum Healthcare 398 ITR 66 (Del.) on the issue of no interest adjustment on receivables is warranted cannot be accepted. In that case, the TPO concluded that the figures of receivables beyond 180 days constitutes an international transaction by itself. In that case, the Hon’ble Court held that every item of receivables appearing in the accounts of an entity which may have d…

Tech Mahindra Business Services Ltd (Formerly Known As Hutchison Global Services Limited), Mumbai vs. Asst CIT 13(3)(2), Mumbai

In the result, appeal filed by the assesee is partly allowed for statistical purpose

ITA 4861/MUM/2017[2013-14]Status: DisposedITAT Mumbai22 Nov 2019AY 2013-14

Bench: Shri C.N.Prasad & Shri G. Manjunathait(Tp).A No.977/Mum/2017 (Assessment Year: 2012-13) Tech Mahindra Business Vs. Acit-13(3)(2) Services Limited Room No.229 (Formerly Known As Aaykar Bhawan, M.K.Road Hutchison Global Services Mumbai-400 020 Limited) Spectrum Towers Mindspace Chincholi Bunder, Link Road Malad (West) Mumbai-400 064 Pan/Gir No.Aabch8136L (Appellant) .. (Respondent) & Tech Mahindra Business Vs. Acit-13(3)(2) Services Limited Room No.229 (Formerly Known As Aaykar Bhawan, M.K.Road Hutchison Global Services Mumbai-400 020 Limited) Spectrum Towers Mindspace Chincholi Bunder, Link Road Malad (West) Mumbai-400 064 Pan/Gir No.Aabch8136L (Appellant) .. (Respondent)

Section 10ASection 143(3)Section 144Section 92C(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “J”, BENCH MUMBAI BEFORE SHRI C.N.PRASAD, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER IT(TP).A No.977/Mum/2017 (Assessment Year: 2012-13) Tech Mahindra Business Vs. ACIT-13(3)(2) Services Limited Room No.229 (Formerly known as Aaykar Bhawan, M.K.Road Hutchison Global Services Mumbai-400 020 Limited) Spectrum Towers Mindspace Chincholi Bunder, Link Road Malad (West) Mumbai-400 064 PAN/GIR No.AABCH8136L (Appellant) .. (Respondent) & Tech Mahindra Business Vs. ACIT-13(3)(2) Services Limited Room No.229 (Formerly known as Aaykar Bhawan, M.K.Road Hutchison Global S…

M/S. Beam Global Spirits & Wine (India) Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 1604/DEL/2014[2009-10]Status: DisposedITAT Delhi21 Aug 2019AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR
Section 143(3)

…position, we draw support from the decision of Hon'ble Supreme Court in the case of Bombay Steam Navigation reported in 56 ITR 52. This view further finds support from the decision of Hon'ble High Court of Delhi in the case of Kusum Healthcare Private Limited 398 ITR 66 wherein the Hon'ble High court, in the context of ‘receivables’ held that not every item of receivable will be considered as an international transaction of receivable and each receivable has to be seen on case to case basis. The relevant finding reads as under: "10. The Court is unable to agree with the above submissions. The inclusion in the Ex…

Beam Global Spirits & Wine India Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

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

ITA 1214/DEL/2017[2012-13]Status: DisposedITAT Delhi21 Aug 2019AY 2012-13

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2009-10] & [A.Y 2012-13]

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Sanjay I Bara, CIT-DR
Section 143(3)

…position, we draw support from the decision of Hon'ble Supreme Court in the case of Bombay Steam Navigation reported in 56 ITR 52. This view further finds support from the decision of Hon'ble High Court of Delhi in the case of Kusum Healthcare Private Limited 398 ITR 66 wherein the Hon'ble High court, in the context of ‘receivables’ held that not every item of receivable will be considered as an international transaction of receivable and each receivable has to be seen on case to case basis. The relevant finding reads as under: "10. The Court is unable to agree with the above submissions. The inclusion in the Ex…

Btr Packaging Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed

ITA 1516/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Jul 2019AY 2011-12

Bench: Shri Pramod Kumar & Shri K. Narsimha Chary

For Appellant: Sh.Mukesh Aggarwal, FCAFor Respondent: Sh. Rakesh Kumar, Sr.DR
Section 92Section 92B

…ion and when credit period allowed to AE is already embedded in the TNMM, there was no need for any separate benchmarking. He placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of Ld. CIT Vs. Kusum Health Care Pvt.Ltd, (2017) 398 ITR 66 Delhi. 7. Ld. DR placed reliance on the orders of the authorities below. 8. We have gone through the record in the light of the submissions made on either side. It remains an undisputed fact that the assessee had adopted TNMM method for determining the arm’s length price for principal amount of exports to AE and it was duly accepted by the Ld. T…

M/S. Hella India Lighting Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1109/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Jul 2019AY 2010-11

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2010-11 Hella India Lighting Ltd., Vs Dcit, B-13, Badarpur Extension, Circle-11(1), New Delhi. New Delhi. Pan: Aaacj0101G (Appellant) (Respondent) Assessee By : Dr. Rakesh Gupta, Advocate & Shri Somil Aggarwal, Advocate Revenue By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing : 16.05.2019 Date Of Pronouncement : 29.07.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 23Rd December, 2014 Passed By The Dcit, Circle 11(1), New Delhi U/S 143(3) Read With Section 144C Of The It Act, 1961 For Assessment Year 2010-11. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Manufacturing Of Automobile Components Including Head Lamps, Tail Lamps, Horns Switches, Bulbs, Sundry Lamps, Wiper Arms & Wiper Blades. It Filed Its Return Of Income On 5Th October, 2010 Declaring A Loss Of Rs.1,46,71,148/-. Since The Assessee Has Undertaken International Transactions With Its Ae, The Assessing Officer

For Appellant: Dr. Rakesh Gupta, Advocate &For Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144CSection 40a

…of interest receivable. So far as the upward adjustment of Rs.13,35,143/- on account of receivables is concerned, the ld. counsel for the assessee, referring to the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kusum Healthcare Pvt. Ltd., 398 ITR 66, submitted that the Hon'ble High Court in the said decision has held that where the assessee has already factored the impact of receivables of working capital and thereby on its pricing/profitability vis-à- vis that of its comparables, any further adjustment only on the basis of outstanding receivables will distract the picture and re-character…

M/S. Aricent Technologies (Holdings) Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 2671/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Jul 2019AY 2009-10

Bench: Sh. N. K. Billaiya & Ms. Suchitra Kambleassessment Year: 2008-09

Section 143Section 92C

…working capital adjusted margins of the comparable companies finally accepted by the TPO at 12.97%. In support of his contention strong reliance was placed on the decision of the Hon’ble High Court of Delhi in the case of Kusum Healthcare Pvt. Ltd reported in 398 ITR 66. Further reliance was placed on the decision of the coordinate Bench in the case of Pitney Bowes Software India Pvt. Ltd. (ITA No.5052/Del/2018) wherein the Tribunal deleted the adjustment on account of 63 outstanding receivables after taking into consideration the working capital adjusted margins of the comparable companies. The counsel further s…

M/S. Aricent Technologies (Holdings) Ltd., New Delhi vs. DCIT, New Delhi

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

ITA 90/DEL/2013[2008-09]Status: DisposedITAT Delhi26 Jul 2019AY 2008-09

Bench: Sh. N. K. Billaiya & Ms. Suchitra Kambleassessment Year: 2008-09

Section 143Section 92C

…working capital adjusted margins of the comparable companies finally accepted by the TPO at 12.97%. In support of his contention strong reliance was placed on the decision of the Hon’ble High Court of Delhi in the case of Kusum Healthcare Pvt. Ltd reported in 398 ITR 66. Further reliance was placed on the decision of the coordinate Bench in the case of Pitney Bowes Software India Pvt. Ltd. (ITA No.5052/Del/2018) wherein the Tribunal deleted the adjustment on account of 63 outstanding receivables after taking into consideration the working capital adjusted margins of the comparable companies. The counsel further s…

Apollo International Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 9/DEL/2015[2010-11]Status: DisposedITAT Delhi12 Apr 2019AY 2010-11

Bench: Shri H.S. Sidhu & Shri O.P. Kantassessment Year: 2010-11 M/S. Apollo International Vs. Deputy Commissioner Of Ltd., Income Tax, Office No. 303, 3Rd Floor, Dlf Circle-3(1), C.R. Building, Courtyard, Saket, New Delhi New Delhi Pan :Aaaca6447N (Appellant) (Respondent) Appellant By Shri Manu K. Giri, Adv. Respondent By Shri Sanjay I. Bara, Cit(Dr)

Section 143(2)Section 14ASection 92CSection 92C(2)

…ed into account for the impact of delay in receivables and thus, any separate adjustment on this account was not warranted in view of the judgment of the Hon’ble Delhi High Court in the case of Principal CIT Vs. Kusum Health Care Pvt. Ltd., reported in (2017) 398 ITR 66 Delhi HC. Learned counsel further made an alternative prayer that if the international transactions of interest on overdue trade receivables is benchmarked applying the LIBOR rate instead of SBI PLR rate, the assessee will not press the main ground. 3.2 On the other hand, Ld. DR relied on the order of the lower authorites. 3.3 We have heard the ri…

M/S Bt (India) Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result this ground is allowed for statistical purposes

ITA 302/DEL/2017[2012-13]Status: DisposedITAT Delhi19 Jul 2018AY 2012-13

Bench: Shri R.S.Syal & Smt. Beena A. Pillaii.T.A. No. 442/Del/2016 (Assessment Year : 2011-12) & I.T.A. No. 302/Del/2017 (Assessment Year : 2012-13) Bt (India) Pvt. Ltd., Vs Acit, Circle 5(1), 11Th Floor, New Delhi Eros Corporate Tower, Opp. International Trade Tower Nehru Place, New Delhi -110 019 Gir / Pan :Aabcc4785E (Appellant) (Respondent) Appellant By : Shri Nageswar Rao, Adv. Ms. Sherry Goyal, Adv. Respondent By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing: 11.07.2018 Date Of Pronouncement: 19.07.2018 Order Per Beena A. Pillai, Jm: Present Appeals Have Been Filed By Assessee Against The Final Assessment Order Dated 28/12/15 & Order Dated 09/12/16, Passed By Ld. Acit, Circle 5 (1), New Delhi Under Section 144 (3) Read With Section 144C Of The Income-Tax Act, 1961 (‘The Act’) For

For Appellant: Shri Nageswar Rao, AdvFor Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 920(2)

…. Counsel submitted that Delhi Tribunal in Kusum Healthcare Pvt.Ltd vs. ACIT reported in (2015) 62 Taxmann.com 79, deleted addition by considering the above principle, and subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. 9.2. On the contrary Ld.CIT DR submitted that interest on receivables is an international transaction and Ld.TPO rightly determined its ALP. In support of his contentions, he read out relevant parts of DRP’s direction, in which Panel relyi…

M/S. Bt (India) Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result this ground is allowed for statistical purposes

ITA 442/DEL/2016[2011-12]Status: DisposedITAT Delhi19 Jul 2018AY 2011-12

Bench: Shri R.S.Syal & Smt. Beena A. Pillaii.T.A. No. 442/Del/2016 (Assessment Year : 2011-12) & I.T.A. No. 302/Del/2017 (Assessment Year : 2012-13) Bt (India) Pvt. Ltd., Vs Acit, Circle 5(1), 11Th Floor, New Delhi Eros Corporate Tower, Opp. International Trade Tower Nehru Place, New Delhi -110 019 Gir / Pan :Aabcc4785E (Appellant) (Respondent) Appellant By : Shri Nageswar Rao, Adv. Ms. Sherry Goyal, Adv. Respondent By : Shri Sanjay I Bara, Cit, Dr Date Of Hearing: 11.07.2018 Date Of Pronouncement: 19.07.2018 Order Per Beena A. Pillai, Jm: Present Appeals Have Been Filed By Assessee Against The Final Assessment Order Dated 28/12/15 & Order Dated 09/12/16, Passed By Ld. Acit, Circle 5 (1), New Delhi Under Section 144 (3) Read With Section 144C Of The Income-Tax Act, 1961 (‘The Act’) For

For Appellant: Shri Nageswar Rao, AdvFor Respondent: Shri Sanjay I Bara, CIT, DR
Section 143(3)Section 144Section 144CSection 144C(5)Section 920(2)

…. Counsel submitted that Delhi Tribunal in Kusum Healthcare Pvt.Ltd vs. ACIT reported in (2015) 62 Taxmann.com 79, deleted addition by considering the above principle, and subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. 9.2. On the contrary Ld.CIT DR submitted that interest on receivables is an international transaction and Ld.TPO rightly determined its ALP. In support of his contentions, he read out relevant parts of DRP’s direction, in which Panel relyi…

Carrier Air-Conditioning & Refrigeneration Ltd., Gurgaon vs. DCIT, Circle- 2(1), Gurgaon

In the result, the appeal is allowed for statistical purposes

ITA 7312/DEL/2017[2013-14]Status: DisposedITAT Delhi13 Jul 2018AY 2013-14

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2005-06 Assessment Year : 2009-10 Assessment Year 2010-11 Assessment Year 2011-12 Assessment Year 2013-14

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Sanjay I Bara, CIT, DR

…l before the DRP, which led to the making of transfer pricing addition of this magnitude as interest on receivables in the final assessment order. 35. Relying on the judgment of the Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), the ld. AR contended that no interest could have been charged as there was no international transaction on this score. 36. Sounding a contra note, the ld. DR submitted that interest on receivables is an international transaction and the TPO has rightly determined its ALP. To buttress the contention of rightly treating the relevant parts…

M/S Carrier Air-Conditioning & Refrigeration Ltd., Gurgaon vs. ACIT, Gurgaon

In the result, the appeal is allowed for statistical purposes

ITA 2140/DEL/2016[2011-12]Status: DisposedITAT Delhi13 Jul 2018AY 2011-12

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2005-06 Assessment Year : 2009-10 Assessment Year 2010-11 Assessment Year 2011-12 Assessment Year 2013-14

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Sanjay I Bara, CIT, DR

…l before the DRP, which led to the making of transfer pricing addition of this magnitude as interest on receivables in the final assessment order. 35. Relying on the judgment of the Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), the ld. AR contended that no interest could have been charged as there was no international transaction on this score. 36. Sounding a contra note, the ld. DR submitted that interest on receivables is an international transaction and the TPO has rightly determined its ALP. To buttress the contention of rightly treating the relevant parts…

Inductis India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal filed by assessee stands partly allowed

ITA 1438/DEL/2016[2011-12]Status: DisposedITAT Delhi13 Jul 2018AY 2011-12

Bench: Shri P.M.Jagtap & Smt. Beena A Pillaiay: 2011-12 Inductis India Pvt.Ltd. Vs. Dy.Cit, Circle 12(1) 414, 4Th Floor, Dlf Jasola New Delhi Tower B Plot No. 10 & 11, Dda District Centre, Jasola New Delhi 110 044 Pan: Aaac18497C (Appellant) (Respondent) Assessee By : Sh. Vishal Kalra, Adv. Sh. S.S.Tomar, Adv. Department By : Sh. Hk Chaudhary, Cit-Dr Date Of Hearing : 18.04.2018 Date Of Pronouncement: 13.07.2018

For Appellant: Sh. Vishal Kalra, AdvFor Respondent: Sh. HK Chaudhary, CIT-DR
Section 143Section 92D

…Hence, any further adjustment to the margins of the assessee on the pretext of outstanding receivables is unwarranted and wholly unjustified.” Ld. counsel submitted that, subsequently Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), held that no interest could have been charged as it cannot be considered as international transaction. 6.4. On the contrary Ld. DR submitted that the master service Agreement dated 01/04/10 placed on record has specified the time within which AE shall make the payments on the invoices raised by assessee which is as under: 3.Charges and term…

M/S. Carrier Air- Conditioning & Refrigeration Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal is allowed for statistical purposes

ITA 728/DEL/2015[2010-11]Status: DisposedITAT Delhi13 Jul 2018AY 2010-11

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2005-06 Assessment Year : 2009-10 Assessment Year 2010-11 Assessment Year 2011-12 Assessment Year 2013-14

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Sanjay I Bara, CIT, DR

…l before the DRP, which led to the making of transfer pricing addition of this magnitude as interest on receivables in the final assessment order. 35. Relying on the judgment of the Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), the ld. AR contended that no interest could have been charged as there was no international transaction on this score. 36. Sounding a contra note, the ld. DR submitted that interest on receivables is an international transaction and the TPO has rightly determined its ALP. To buttress the contention of rightly treating the relevant parts…

M/S. Carrier Air- Conditioning & Refrigeration Ltd., Gurgaon vs. ACIT, Gurgaon

In the result, the appeal is allowed for statistical purposes

ITA 1126/DEL/2014[2009-10]Status: DisposedITAT Delhi13 Jul 2018AY 2009-10

Bench: Shri R.S. Syal & Smt. Beena A. Pillaiassessment Year : 2005-06 Assessment Year : 2009-10 Assessment Year 2010-11 Assessment Year 2011-12 Assessment Year 2013-14

For Appellant: Shri Nageshwar Rao &For Respondent: Shri Sanjay I Bara, CIT, DR

…l before the DRP, which led to the making of transfer pricing addition of this magnitude as interest on receivables in the final assessment order. 35. Relying on the judgment of the Hon’ble Delhi High Court in Pr. CIT vs. Kusum Health Care Pvt. Ltd. (2017) 398 ITR 66 (Del), the ld. AR contended that no interest could have been charged as there was no international transaction on this score. 36. Sounding a contra note, the ld. DR submitted that interest on receivables is an international transaction and the TPO has rightly determined its ALP. To buttress the contention of rightly treating the relevant parts…