TaxTMI 
TaxTMI 
2021 (2) TMI 1327
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....s etc. 3. For the assessment year 2012-13, assessee filed the return of income on 5/9/2013 declaring a loss of Rs. 11, 06, 21, 0 88/-. During the financial year 2011-12 relevant for the assessment year 2012-13, the assessee undertook international transactions with its Associated Enterprises (AEs) in the nature of export of trading/finished goods, availing of support services, and the case was referred to Transfer Pricing Officer (Ld. TPO) for determination of arm's length price; and that all such transaction were held to be at ALP but Ld. TPO observed that audited financials revealed substantial amount of recoverable and proceeded to make an adjustment on account of alleged delay in receiving the amount from AE against sales made to them. Major transactions undertaken by the assessee is the export of finished goods amounting to Rs.84.49 Crores to its AEs for which the assessee had applied TNMM as the most appropriate method (OP/OC). The assessee earned margins under the TNMM method @ 12.79%based on OP/OC and the comparables had earned a margin of 7.61%.All the reported international transactions were accepted at the ALP and no adjustment has been made by the AO/ Ld. TPO in any of....
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.... Kusum Health Care Pvt. Ltd. 2017-TII-28-HC-Delhi TP,then no adjustment on alleged delay in recoverables should be made, and a similar directions was given by for AY 2011-12 also vide its order in ITA No. 1287/Del/217 dated 12.11.2020. 8. Insofar as this submission that this particular issue is covered by the orders of the Tribunal for the earlier assessment years is concerned, there is no denial of the same. In these decisions, the Tribunal placed reliance on the decision of the Hon'ble jurisdictional High Court in the case ofKusum Health Care Pvt. Ltd. (supra), wherein the Hon'ble Apex Court held that,- The Court is unable to agree with the above submissions. The inclusion in the Explanation to Section 92B of the Act of the expression 'receivables' does not mean that de hors the context every item of 'receivables' appearing in the accounts of an entity, which may have dealings with foreign AEs would automatically be characterized as an international transaction. There may be a delay in collection of monies for supplies made, even beyond the agreed limit, due to a variety of factors which will have to be investigated on a case to case basis. Importantly, the impact this would h....
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....n'ble Delhi High Court when he passed the impugned order. Therefore, on an overall view of the facts of the case and respectfully following the ratio of the Hon'ble Delhi High Court in the case of Principal CIT vs. Kusum Health Care Pvt. Ltd (supra) we restore this issue to the file of the AO/TPO for the purpose of re-examining and re-considering the issue in light of the ratio of the judgment of the Hon'ble Delhi High Court in the case of Principal CIT vs. Kusum Health Care Pvt. Ltd (supra) and pass a speaking order as per law after giving proper opportunity to the assessee. The assessee shall be at liberty to take all/any of the pleas raised before us and shall also be at liberty to file relevant workings/computations. 11. This view is followed by the Tribunal for the assessment year 2011-12 also. It is an admitted fact that the learned Assessing Officer had not consider this issue in the light of the submissions now made by the Ld. AR and the assessment orders for the earlier assessment years, after remained, are pending. It is, therefore, the submission on behalf of the Revenue that it would be just inconvenient for the learned Assessing Officer to take a view on this as....
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.... noticed that the Ld. CIT(A) has allowed relief to the assessee on this issue in A. Y. 2010-11 and A. Y. 2011-12, but the learned Assessing Officer had chosen not to follow these orders of Ld. CIT(A) on the ground that the department had filed appeal against these orders before ITAT, Delhi. Ld. CIT(A), however, by following the earlier order of CIT(A) for AY 2011-12 allowed the relief to the assessee keeping in view the judgments of Hon'ble Supreme Court in the case of ICDS Ltd. v. CIT 350 ITR 527 andCIT v. H. B. Leasing & Finance Ltd. 360 ITR 362 granted relief in the appeal. 15. Ld. AR submitted that this issue also came up for consideration in assessee's own case for the A. Y. 2010-11 before a coordinate Bench of this Tribunal in ITA no. 5736/Del/2015 filed by the Revenue and a coordinate Bench of this Tribunal held in that the issue is squarely covered in favour of the assessee by the judgment of Hon'ble Supreme Court in the case of ICDS Ltd. v. CITreported in 29 taxmann.com 129 (SC) andLiquidators of Pursa Ltd. v. CIT 25 ITR 265to come to the conclusion that "used for the purposes of business, profession or vocation" means used for the purpose of enabling the owner to carry o....