2019 (8) TMI 606

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....DR ORDER PER K. NARSIMHA CHARY, J.M. Aggrieved by the Order dated 27.01.2016 passed by the Ld. Assessing Officer, New Delhi, M/s BTR packaging private limited ("Assessee") preferred this appeal. 2. Brief facts of the case are that the assessee was incorporated on 18/07/2005 as 100% export oriented unit and has been engaged in manufacturing and exporting of high-quality polyethylene re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unt of exports to Associated Enterprise ("AE") and the same was accepted by the Ld. TPO. Ld. TPO, however, passed an order dated 22/01/2015 by suggesting adjustment under section 92 CA of the Income Tax Act, 1961 ("the Act") to the tune of Rs. 5,27,706/-in respect of the interest on receivables outstanding. 5. The assessee f iled objections before the Ld. Dispute Resolution Panel ("DRP"). Ld. D....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sdictional 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 expo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for transfer pricing scrutiny only when it is a standalone activity or a demonstrated approach is adopted by the assessee to use Accounts Receivable to have free working capital funding; and that if the impact of extended credit period on working capital was factored in the pricing / profitability, then there is no tax leakage or evasive tactics adopted by the taxpayer while transacting with the A....