2022 (12) TMI 1070

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....A No. 1098/Del/2021, following grounds have been raised by the assessee: "1. On the facts and circumstances of the case and in law, the Ld. Assessing Officer ('AO') erred in not passing the final assessment order u/s 143(3) of the Act dated 30th November 2016 in the original proceedings, in conformity with the binding directions of the Ld. Dispute Resolution Panel ('DRP') dated 16th November 2016 issued u/s 1440(5) of the Act and hence, the same has been passed in violation of the mandatory provisions of section 1440(10) read with 1440(13) of the Act. Accordingly, the assessment order is bad in law and void, and therefore, the entire assessment proceedings is liable to be quashed. 2. On the facts and circumstances of the c....

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....recording any satisfaction for its initiation." 3. In ITA No. 1099/Del/2021, following grounds have been raised by the assessee: "1. On the facts and circumstances of the case and in law, the Ld. Dispute Resolution Panel ('DRP') has erred in confirming the draft assessment order passed by the Ld. AO and enhancing the income of the Appel lant by INR 8,05,59,981. 2. On the facts and in circumstances of the case and in law, the Ld. DRP erred in confirming the order passed by the Ld. Transfer Pricing Officer ('TPO') and treating the receivables outstanding beyond 60 days from associated enterprises as deemed loan and charging notional interest on i t. 3. On the facts and in circumstances of the case and in law, the....

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....ssessee on 09.12.2019, proposing certain variations in the income returned. Aggrieved the assessee filed objections before the Dispute Resolution Panel. 7. The ld. DRP has considered the submission and upheld the order of the TPO, holding that the TPO has considered the judgments of the Hon'ble Delhi High Court in the case of PCIT Vs. Kusum Healthcare 398 ITR 66, at page 6 of the order dated 25.10.2019 and give categorical finding of distinguishable facts emerging in this case. It was held that the TPO has noted the study of the bi l l wise and payment wise analysis of the receivables in the case of assessee reveals that this is not a case involving this issue for a year or two and, in fact there exists a consistent presence of outst....

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.... receivables arising from intercompany services transactions (included in the definition of ' international transaction' vide Finance Act 2012) was duly benchmarked by the assessee by undertaking working capital adjustment during assessment proceedings and the same is subsumed in the working capital adjustment. The ld. DRP held that this argument was specifically negatived by the ITAT in Bechtel India cited supra, following its decisions in Ameriprise India (P) Ltd. and Mckinsey Knowledge Centre (P) Ltd. cited supra in the following words: "20. The Tribunal also explained that i f an invoice is raised during the year and the proceeds are realized within the year, but, beyond the stipulated period of agreement, their, the sa....

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.... 12. The Delhi Tribunal in case of Kusum Healthcare Pvt. Ltd. vs. ACIT (ITA No. 6814/Del/2014) order dated 31.03.2015 held that the working capital adjustment takes into account impact of outstanding receivables and no further adjustment required if the margin of the assessee is higher than working capital adjusted margin of comparable. 13. The Hon'ble Delhi Tribunal in case of Ameriprise India P. Ltd. vs. ACIT (ITA No. 2010/Del/2014) [order dated 14.08.2015] considered the decision of coordinate bench in the case of Kusum Healthcare and held that the al lowing working capital adjustment in the international transaction of rendering services can have no impact on the determination of ALP of the international transaction of interest on....

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....peal of the assessee on other issue, also referred to the decision of the Hon'ble Delhi Tribunal in case of Ameriprise India P. Ltd. vs. ACIT (ITA No. 2010/Del/2014) on issue of interest charged on outstanding receivable and concluded that the assessee's contention that the ITAT erred in concluding that charging of interest on delayed receipt, of receivables is a separate international transaction which requires to be benchmarked independently, is incorrect." 18. Aggrieved, the taxpayer (Mckinsey Knowledge) filed Review Petition before the Hon'ble High Court against the order dated 09.08.2018 and the Hon'ble High Court, vide order dated 16.04.2019 in Review Pet. No. 360/2018, was pleased to recall/correct their order dated 09.08.2018....