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2023 (2) TMI 1259 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Concord United Pvt. Ltd. company is majorly dealing with medium and drilling products whereas the assessee deals in industrial automation and process control - we hold that Concord is not functionally comparable to the assessee and accordingly we direct the TPO to exclude the company from the list of comparables. Sharpline Automation Pvt. Ltd. company is deriving income from Sale of products as well as services whereas there is segmental information available in this regard. Considering these facts we are of the view that the company being functionally different cannot be comparable with assessee and accordingly we direct the AO to exclude the company from the list of comparables. Treatment of provision for expected loss and the reversal as being non-operative in nature - AR submitted that the assessee has debited the profit & loss account towards provision for estimated loss on construction contract and the reversal of excess provision is credited to the profit & loss account - AR drew our attention in this regard to the directions of the DRP where the direction is given for parity of treatment for the provision and the reversal and submitted that the TPO has not properly given effect to the same - HELD THAT:- We remit the issue back to the AO/TPO to consider the issue afresh in the light of the directions of the DRP and the Hon’ble Tribunal in assessee’s own case [2021 (11) TMI 1178 - ITAT BANGALORE] TDS u/s 192 - no TDS was deducted on the salary reimbursement - AO held that the salary cost of seconded employees form an integral part of fees for included services and they are not just reimbursements ,therefore tax should have been deducted on the payments - AR submitted that the DRP has upheld the disallowance on the ground that the secondment agreement and assignment letters were produced and whatever was produced was rejected stating the same to be unreliable - AR prayed for the admission of additional evidence as these evidences when considered would substantiate the claim of the assessee - HELD THAT:- With regard to disallowance made towards secondment cost, the additional evidences now produced go the root of the issue and the core reason for not allowing the deduction by the lower authorities. For a proper adjudication of the issue and for substantial cause, the additional evidence is admitted and taken on record. We accordingly remit the issue back to the AO/TPO for verification of the evidences and allow the deduction as relying on Flipkart Internet Pvt. Ltd case [2022 (6) TMI 1251 - KARNATAKA HIGH COURT] Thus ground is allowed for statistical purposes.
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