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TMI Blog2024 (2) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... h may have dealings with foreign AEs would automatically be characterized as an international transaction and (ii) With the Assessee having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-a-vis that of its comparables, any further adjustment only on the basis of the outstanding receivables would have distorted the picture and recharacterized the transaction. Addition deleted - Decided in favour of assessee. - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER For the Assessee : Mr. Deepak Joshi, Adv. For the Revenue : Shri R.D. Burman, CIT(DR) ORDER PER SHAMIM YAHYA, AM, This appeal by the assessee is directed against the order of the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tel India Pvt. Ltd. vs ACIT [2017] 85 taxmann.com 121 (Delhi Trib.) 6. Upon careful consideration, we find that in the case of Alcatel Lucent India Limited (supra), this Tribunal has considered similar issue and held as under:- We find that ITAT in its recent decision in Orange Business Services India Solutions )P.) Ltd. has elaborately noted similar facts and has held as under :- 10. The Id. DRP held that the assessee's reliance on the Delhi High Court's decision in Kusum Health Care (P) Ltd. (supra) is quite misplaced as in that case an important aspect of the matter was not brought to the notice of their lordships of the High Court that this new explanation to section 92B was specifically inserted to reiterate the fact that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meriprise India (supra). 15. In the meanwhile, the Hon'ble Delhi High Court, vide order dated 25-4-2017 in the case of Kusum Healthcare (supra), dismissed the appeal of the revenue against the decision of Hon'ble Tribunal and that (i) 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 and (ii) With the Assessee having already factored in the impact of the receivables on the working capital and thereby on its pricing/profitability vis-a-vis that of its comparables, any further adjustme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 7 -2-2018 referred to Kusum Health Care had expressly remitted the matter for consideration to the ITAT supports the assessee's submission. All that the court had stated on 7-2-2018 was that the matter required re-examination by the ITAT in the light of the Kusum Health Care (supra). For these reasons, the judgment to the extent it deals with adjustments made by the TPO, and regarding interest on delayed receipt of receivables, is a clear error. The court also furthermore notes the submissions made with respect to inapplicability to Explanation of Section 92B and its prospective operation. As the order of 7-2-2018 reserved by-contentions, this Court does not propose to disturb the effect of that matter. The matter will be considered b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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