9911796707
TMI Blog2014 (1) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal order dated 25.10.2011 as well as subsequent two rectification orders passed u/s 154 on 4.3.2013 (hereinafter called the first rectification order) and 30.10.2013 (hereinafter called the second rectification order) respectively. 3. Briefly stated the facts of this issue are that the assessee is an Indian Branch of Genpact Services LLC, a US Corporation. During the year, the assessee was engaged in providing collections/call centre services and related back office support services. Certain international transactions were entered into by the assessee with its Associated Enterprises (AEs) which were duly reported. For the purposes of the present appeal, we are concerned only with the correctness of working capital adjustment. While giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving effect to the correct figure of `Trade receivables' while calculating the figure of working capital adjustment. 5. We have heard the rival submissions and perused the relevant material on record. There is no dispute about the fact that the TPO vide its original order calculated the working capital adjustment, by means of Annexure-1 to his order, a copy of which is available on page 12 of the Synopsis. It implies that in principle he was satisfied about the availability of such working capital adjustment in the given circumstances. From the working given in the original order, it can be seen that the figure of `Trade receivables' has been taken at Nil and the mean of comparables by giving effect to this working capital adjustment has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s' under the Current assets but there are certain Loans and advances receivable in cash to the tune of Rs.61169228/-. A Note is appended to this Schedule stating that this amount is due from Genpact India, a company under the same management. The contention of the ld. AR is that this amount was given as a `Loan' to its sister concern and the same is not in the nature of `Trade receivable'. The crux of the arguments by both the sides is limited only to the figure of `Trade receivables'. Whereas the TPO in the first rectification order adopted a positive figure of `Trade receivables' as against 'Nil' is the original order and stuck to it in the second rectification order, the assessee is harping on the contention that the amount of `Trade rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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