9911796707
TMI Blog2021 (10) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... m that of the respondent and also with a totally different risk profile. Adjustments made on account of interest on receivables - Under no transfer pricing norm, principle or evaluation of any benefit can there be a one-sided adjustment taking into account delayed invoices while at the same time ignoring invoices/payment received in advance. Consequently, factually there can be no notional computation of delayed receivables only ignoring the receivables received in advance. A perusal of paper book reveals that most of the invoices/receivables had been paid significantly in advance. When the period for which the amounts of receivables received in advanced enjoyed by the respondent is seen vis-a-vis the amount receivable beyond si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the order of ITAT was perverse on fact directing to delete adjustments made on account of interest on receivables? 3. Mr.Ruchir Bhatia, learned counsel for the appellant, submits that the ITAT erred in excluding Aditya Birla Capital Advisors Pvt. Ltd, (for short ABCL ) as a comparable since it is engaged in providing financial advisory services and management services which require procurement and analysis of data, and final result, which is similar to the function performed by the assessee company. 4. He further submits that the ITAT has erred in deleting transfer pricing adjustment made on account of interest on receivables. He submits that the ITAT has failed to appreciate that deferred payment or receivable or any other deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining details of money received corresponding to invoices raised on AEs. 9. He contends that the Transfer Pricing Officer while making the adjustment on account of the delay in receiving the outstanding has only considered invoices/receivables paid beyond sixty days for making a notional interest adjustment ignoring payments/receivables made in advance. He states that if the adjustment is to be computed for interest, the same should be computed considering the weighted average of all receivables. He points out that the weighted average period of recovery days works out to negative twenty-two days. 10. He emphasises that the Tribunal after noting the statement showing the respondent has received more in advance than outstanding and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent is seen vis-a-vis the amount receivable beyond sixty days, it is apparent that the respondent has received significantly more advance rather than outstanding receivable beyond sixty days. 14. Consequently, on the facts and circumstances of the case, the notional interest relating to alleged delayed payments in collecting receivables from the AEs is uncalled for as in fact, there are no outstanding receivables as the amount received in advance far outweigh the amount received late. 15. The question as to whether in a given case transfer pricing adjustment on delayed receivables , could apply even to a debt-free company or not, hence does not arise on facts and is left open. 16. Keeping in view the aforesaid conclusions, thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
