No Additional Interest Imputation on Year-End Receivables After Working Capital Adjustment

Phoenix Lamps Ltd Vs DCIT (Allahabad High Court) On September 10, 2024, the Allahabad High Court addressed the appeal in Phoenix Lamps Ltd Vs DCIT, focusing on the treatment of delayed receivables from Associated Enterprises (AEs). The Court noted that the Income Tax Appellate Tribunal (ITAT) had previously ruled that working capital adjustments typically account for interest on outstanding receivables, based on a precedent set by the Delhi High Court in Kusum Health Care Pvt. Ltd. The Tribunal directed the Transfer Pricing Officer (TPO) to reassess whether interest should be applied to receiv...