Ita/1469/2018 Of Pr. Commissioner Of Income Tax-2 v. M/S Bt India Pvt. Ltd. Through

$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI+ ITA 1469/2018 PR. COMMISSIONER OF INCOME TAX-2 ..... Appellant Through: Ms.Vibhooti Malohotra with Mr.Siddharth Manocha, Advocates. versus M/S BT INDIA PVT. LTD. Through: ..... Respondent Mr. Nageswar Rao, Advocate. CORAM:JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH O R D E R06.08.2019 % 1. The Revenue is in appeal against an order dated 26[th] February 2018 passed by the ITAT in ITA 566/Del/2015 for the Assessment Year (AY) 2010000-11. 2. The Court finds that in the impugned order on the issue whether the interest on the delayed payment of trade receivables can be an international transaction capable of TP adjustment was held in favour of the Assessee by the ITAT by following the decision dated 25[th]April 2017 of this Court in ITA 765 of 2016 (Pr. CIT 5 v. Kusum Healthcare). There was one other issue concerning salary of an employee and disallowance of TDS and sales promotion expenses and this was remanded to the Assessing Officer. 3. Having heard learned counsel for the parties, the Court is of the view that the issue relating to trade receivables should also be remanded to the AO for a fresh determination in accordance with law. Therefore, impugned order of the ITAT is modified only to the extent that the issue concerning trade receivables will stand remanded to the AO for afresh decision. 4. It is pointed out by learned counsel for the Assessee that since the working capital has been adjusted by applying comparables, the element of interest on trade receivables already stand accounted for. However, since neither the order of DRP nor order of the ITAT are explicit on this aspect, this Court is of the view that the matter should be remanded to the AO for afresh decision. 5. The appeal is disposed of. S. MURALIDHAR, J. AUGUST 06, 2019 / tr TALWANT SINGH, J.