Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 616 - ITAT BANGALORETP Adjustment - Comparable selection - HELD THAT:- As compared to the software development services income of assessee companies functionally dissimilar with that of assessee need to be deselected from final list. Foreign exchange loss - HELD THAT:- When a query was raised to the learned Authorised Representative with Respect to disclosure of loss in the Balance Sheet., the learned Authorised Representative demonstrated with copy of Balance Sheet, but there is no clarity on foreign Exchange loss claim. Therefore we considering the facts and submissions and the disclosure, Restore this disputed issue to the file of learned CIT (Appeals) to adjudicate afresh and allow this ground of appeal of Revenue for statistical purposes. Working Capital Adjustment - HELD THAT:- Transfer pricing order on Working Capital Adjustment, we find that the TPO has computed it at 5.97% but has not given any basis for restricting the adjustment to 1.71%. In various cases relating to transfer pricing adjustment, this Tribunal has been directing to give Working Capital Adjustment on actual basis and the TPO having arrived at 5.97%, ought to have adopted the same instead of restricting it to 1.71%. in view of the same, we deem it proper to remand this issue to the file of the TPO/A.O. for working out the ALP after giving adjustment of working capital as per the calculation of the A.O. in annexure D annexed to the transfer pricing order. This ground of appeal is accordingly allowed.
|