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2017 (3) TMI 1689 - AT - Income TaxTPA - comparable selection - Held that:- The assessee company was engaged in providing data collection, web services, information research and related support services to its associated enterprises (AE), thus companies functionally dissimilar with that of assessee need to deselected from final list. Working capital adjustment - Held that:- In the case of the assessee company, the working capital adjustment has been allowed in assessment year 2008-09 and 2012-13 and there has been no change in the functionality, risk and profile of the assessee company from assessment year 2008-09 to 2012- 13. We do not find any reason why the working capital adjustment should not be allowed to the assessee, when it has been allowed in immediately preceding year. The Object of the entire comparability process is to reduce the difference between the comparables and the assessee company. The Tribunal, in various judgments allowed working capital adjustment to companies of ITES industries. Respectfully following the decision of the Tribunal in the case of Demag Cranes and Component (India) Private Limited (2012 (1) TMI 60 - ITAT PUNE), we direct the TPO/AO to allow the working capital adjustments to the assessee. The ground of the appeal is accordingly allowed.
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