2016 (8) TMI 1195 - ITAT DELHI

TPA - selection of comparable - Held that:- Assessee is engaged in the business of distribution and sale of Digital Switching Equipment, Cellular Exchange Equipment and Other Telecommunication Equipment and also provides related services. The assessee also provides Contract Software Development (CSD) Services and Technical Support Services (TSS), thus companies dissimilar with that of assessee need to deselected from final list of comparable.

Working capital adjustment and risk adjustment - Held that:- Hon’ble DRP has allowed the assessee’s claim for working capital adjustment in assessee’s own case in AY 2010-11. The Ld. CIT DR also agreed to the preposition that the issue may be restored to the file of the TPO for re-examination. On the issue of risk adjustment it was the Ld. AR submission that the issue may be restored for obtaining expert assistance. The Ld. AR also referred to the Capital Asset Pricing Method (CAPM) Computation submitted before the Hon’ble DRP and submitted that the Hon’ble DRP has not considered the computation at all. On overall factual matrix of the issue, it is our considered opinion that both these issues required restoration to the file of the TPO for reconsideration and reexamination and it is ordered accordingly.