Tribunal held that the assessee had not borrowed any money. Where the assessee was a debt-free company, the question of receiving any interest on receivable did not arise. The Assessing Officer was directed to delete the addition. Tribunal held that, \u00a0the operating margin of E could not be included to arrive at the arm\u2019s length price of controlled transactions, which were materially different in content and value. Thus it could not be compared with a low-end service provider like the assessee. I was excluded on the basis of the high brand value and high turnover of the company. ( AY.2012-13, 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing \u2013 Arm\u2019s length price – Debt-free company \u2014Adjustment in relation to notional interest on overdue receivables is held to be not justified- Comparable – Company having controlled transactions \u2014 High brand value and high turnover of company \u2014Held not comparables.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14200","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3H2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14200"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14200\/revisions"}],"predecessor-version":[{"id":14201,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14200\/revisions\/14201"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}