ITAT upheld TP adjustment for outstanding debtors beyond agreed period

Bharti Airtel Services Ltd. Vs DCIT (ITAT Delhi) In the present case the service agreement clearly says that the amount of payment is to be made by the associated enterprises to the assessee within 15 days. Such payment was not made within that period but beyond that. The learned assessing officer held that the amount of outstanding bills beyond a specified period of 15 days is a separate international transaction giving certain benefit of extended credit to the associated enterprise. Such is the finding of the learned CIT – A also. We have carefully gone through the service agreement produc...