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TMI Blog2022 (5) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... justment only on the basis of the outstanding receivables would have distorted the picture and re-characterized the transaction. Needless to mention that the law laid down by the Hon ble High Court in the case of Kusum Healthcare was followed by the Co-ordinate Benches of the ITAT. There is complete uniformity in the act of the assessee in not charging interest from both the AE and Non AE debtors and the delay in realization of the export proceeds in both the cases is same. Reliance is being placed on the decision of case of Indo American Jewellery Ltd. [ 2013 (1) TMI 804 - BOMBAY HIGH COURT] . Thus neither interest has been charged nor paid, we hereby allow the appeal of the assessee on this ground. - ITA No. 6806/Del/2018 - - - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring switches, condition sensing switches and controls, connection system, control circuits and load protections, industrial computers and monitors, lighting control, limit switches, push buttons, sensors etc. 4. Apart from manufacturing/assembling, the assessee is also engaged in trading related products. Rockwell India also provides services like information technology and engineering based consultancy services, training etc. 5. At the outset, the ld. AR taken up the Ground No. 3 pertaining to interest on outstanding inter-company receivables. 6. The TPO estimated the delay on estimated average of outstanding receivables of 6 months and calculated interest for 182 days @ 4.31% (LIBOR + 400 basic points). The ld. DRP following the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 Rockwell Samsung Automation Ltd. Korea Fellow Subsidiary 9,206,873 - 9,206,873 6 Rockwell Automation Australia Ltd. Fellow Subsidiary 340,682 - 340,682 7 Others Fellow Subsidiary 11,108,465 - 11,108,465 8 Rockwell Automation Inc, Canada Fellow Subsidiary 6,937,229 - 6,937,229 9 Rockwell Automation Southeast Asia Pte. Ltd. Singapore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal 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 allowing 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 receivables from AEs. The Delhi Tribunal in the case of McKinsey Knowledge Centre Pvt. Ltd. Vs. DCIT [ITA No. 154/Del/2016] (order dated 15.12.2016) followed their finding in the case of Ameriprise India (supra). 11. In the meanwhile, the Hon ble Delhi High Court, vide order dated 25.04.2017 in the case of Kusum Healthcare, dismissed the appeal of the revenue agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... national transaction which requires to be benchmarked independently, is incorrect. 14. 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, holding as under: 9. As far as the first argument by the review petitioner, i.e., the answer to the question of bringing to tax the interest amounts goes, this Court is of the opinion that the fact that the order of 07.02.2018 referred to Kusum Health Care had expressly remitted the matter for consideration to the ITAT supports the assessee s submission. All that the court ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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