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2021 (4) TMI 1290 - ITAT HYDERABADTP Adjustment - comparability selection - HELD THAT:- We are informed during the course of hearing that this tribunal's coordinate bench order in assessee’s case [2021 (1) TMI 25 - ITAT HYDERABAD] has directed the departmental authorities to exclude the very five comparables M/s Tata Elxsi Limited, M/s Infobeans Technologies Ltd., Persistent Systems Ltd, Infosys Ltd., M/s Cybage Software Private Ltd.for the purpose of determining the ALP in the corresponding segment of development of software and ITES. Working capital adjustment - As relying on GXS INDIA TECHNOLOGY CENTRE PVT. LTD [2021 (1) TMI 775 - ITAT BANGALORE] assessee’s failure in placing on record the relevant working capital particulars only led to the impugned disallowance than on merits. We thus accept this 7th substantive ground for statistical purposes and direct the TPO to consider assessee’s working capital adjustment as per law. ALP adjustment in the nature of interest on receivables due to its overseas Associated Enterprises ‘AEs’ - HELD THAT:- It transpires that the learned lower authorities had adopted SBI short term fixed deposit rate on assessee’s international transactions without doing any benchmarking as per market rates in the very segment by referring to comparable entities. We accept this instant substantive ground on this count alone and direct the TPO to delete the impugned adjustment. Deemed international transaction - ALP adjustment in respect of recoveries made from resident associated enterprise M/s CDK Global India Private Limited - HELD THAT:- This last issue of deemed international transaction deserves a fresh innings before the TPO. We accordingly deem it appropriate to restore the same back to the file of TPO for his adjudication as per law within three effective opportunities of hearing. The assessee or its authorized representative shall appear before the TPO on or before 31.08.2021 with all necessary papers/ verification of records at its own risk and responsibility in the specified number of opportunities, failing which our remand directions shall stand vacated.
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