2020 (9) TMI 1149

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....n Rao Revenue by: Smt. Anjali Sahu, DR ORDER D.S. Sunder Singh, A.M. This is assessee's appeal for the A.Y 2014-15 against the order passed u/s 143(3) r.w.s. 144C of the I.T. Act. The ITAT decided the appeal originally by an order dated 12.06.2019 in ITA No.1921/Hyd/2018. Subsequently, the assessee filed a Miscellaneous application stating that ground No.2.1 was not decided by the ITAT....

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....erest on receivables which was not adjudicated by the ITAT in the original appeal. He further submitted that the assessee is following TNMM method and had interest free funds in the system. The delay in receivables was less than 70 days as against the industry average of 90 to 120 days. He further argued that in the TNMM method, the profit margin of the assessee is more than comparable and it is a....

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....record. The assessee is following the TNMM method and there is no dispute with regard to the method followed by the assessee. The TPO has made economic analysis and given a finding that no adjustment is required and the transactions were at ALP. On going through the order of the learned TPO, though it was stated that there were outstanding trade receivables to the extent of Rs. 6,09,86,954/- the T....

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.... of payment within stipulated period of 90 days cannot form basis for holding the existence of International transaction between assessee and its AE, where outstanding is not received within stipulated period. Such is the proposition laid down by Hon'ble Delhi High Court in Pr. CIT-V vs Kusum Health Care Pvt.Ltd. (supra) especially where working capital adjustment has been allowed to assessee.....