Existence of International Transaction on account of Receivables: Delhi HC confirms no Upward Adjustment is Required [Read Order]

The Delhi High Court confirmed no upward adjustment is required on the existence of international transaction on account of receivables.

By the instant appeal the appellant/assessee sought to assail the order passed by the Income Tax Appellate Tribunal [ITAT]. According to Aniket D. Agrawal, counsel, who appeared on behalf of the appellant/assessee, the seven questions proposed hereinabove are broadly covered, can be divided into two issues. The proposed questions articulated the grievance which the appellant/assessee had with regard to the Tribunal’s directions to remand the issue of selected comparables which were filed with the Transfer Pricing Officer (TPO).

The proposed question represent, the second grievance which is that the Tribunal did not adjudicate upon the principal issue concerning existence of international transaction on account of receivables and simply remanded the matter to the TPO for re-computation of adjustment, in accordance with the findings returned by the Dispute Resolution Panel.

A Division Bench comprising Justices Rajiv Shakdher and Girish Kathpalia observed that “Insofar as the grievance with regard to the Tribunal remanding the issue of selected comparables to the file of TPO is concerned, we are informed by Mr Agrawal that in the appeal effect proceedings, the TPO via order dated 28.12.2019 after computing the adjustment on account of selection of comparables has concluded that no upward adjustment is required to be made”

“Insofar as the other grievance is concerned, as indicated above, Mr Agrawal states that in the appeal effect proceedings, the adjustment was recomputed. Thus, the adjustment made for AY 2010-11 after rectification via order dated 10.08.2020, has been recomputed and pegged at Rs.4,42,972/-. Since the amount is small, Mr Agrawal says that the grievance as articulated above is not being carried forward by the appellant/assessee” the Court concluded.

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