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TMI Blog2015 (7) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... ational cost and hence, they should have been removed before arriving at operational margins? - Held that:- While arriving at operational profit ratio, extraordinary items should be eliminated. Bad debts or provision for bad debts are extraordinary items and have to be eliminated for arriving at the operational profit. - Decided in favour of assesse. - I.T.A. No. 903/Del/2010, C.O. No. 130/Del/2010 - - - Dated:- 19-2-2015 - Shri I. C. Sudhir And Shri J. S. Reddy,JJ. For the Petitioner : Shri. Peeyush Jain, CIT.DR. For the Respondent : Shri. Himanshu Shekhar Sinha, Sh. Manoneet Dalal, Adv. ORDER Per J. S. Reddy, AM: This is an appeal filed by the Revenue directed against the order of the CIT (Appeals)-XX, New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported by the company for FY 2003-04. 4. That the Ld. CIT(A) grossly erred on facts and law by including extraordinary expenses in the nature of Provision for doubtful debts and Bad debts written off in the computation of the assessee s Total Cost, despite the objections raised by the assessee. 5. That the Ld. CIT(A) grossly erred on facts and law by not allowing to the assessee, the benefit of (+/-) 5% range mentioned in the proviso to section 92C of the Act before computing the adjustment. 3. Facts are at Para 4.1 4.2 of the CIT(A) s order, which is extracted for ready reference. 4.1 Free Markets Services Private Limited (now known as Ariba India Private Limited and hereinafter referred to as Ariba India or appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pro rata data cannot be adopted as only the actuals have to be taken, as otherwise the purpose of bench marking would get defected. 5. The ld. counsel for the assessee Mr. Himanshu Shekhar on the other hand opposed the contentions of the Revenue and submitted that sending back the matter to the file of the TPO would be an empty formality for the reason that, there is no dispute that M/s LAN ESADA Industries Ltd. is a comparable and the only issue is whether the correct financial data, as per annual report of the company is to be considered or financial data in public domain which is admittedly wrong is to be considered. He relied on certain case laws and submitted that the annual reports are accurate and hence they should be considered. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with law. 13. In the result, ground no. 2 is allowed for statistical purposes. 14. On ground no. 3 the ld. counsel argued that the, comparables M/s Kushagra Software Limited was sought to be excluded by the assessee before the ld. CIT(A), on the ground that segmental results and data of this company could not be culled out from the financial statements. The ld. CIT(A) rejected this contention of the assessee on the ground that the assessee cannot ask for exclusion of a comparable, when it was the assessee who has included the same in the T.P. Report. 15. The ld. DR opposed this contention of the assessee. After hearing both sides we find that this issue is no more res integra as the Special Bench of the Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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