2018 (4) TMI 79 - ITAT KOLKATA

Determination of Arms Length Price in respect of an international transaction of rendering software development services - comparability analysis - Held that:- The assessee rendered software development services thus companies functionality dissimilar with that of assessee need to be deselected from final list.

Working capital adjustment - Held that:- Direct the assessee to give computation of working capital adjustment as per the formula for calculating the working capital adjustment. The TPO is directed to examine the working capital adjustment so given in accordance with law.

Disallowance of Entrance fees, subscription and cost of facilities paid to clubs - addition of aforesaid expenses had no nexus with the business of the assessee - Held that:- The tribunal following the decision of the Hon’ble Supreme Court in the case of United Glass Manufacturing Co. Ltd. [2012 (9) TMI 914 - SUPREME COURT] wherein it was held that club expenses of employees was business expenditure allowable u/s 37 of the Act, allowed the claim of the assessee. Respectfully following the decision of the tribunal in assessee’s own case we direct the AO to allow the claim of the assessee for deduction.

Provision for replacement guarantee allowable.

Direct the AO to allow the lease rent paid as deduction.

Short credit of tax deducted at source - action of the AO in not granting credit of tax deducted at source - Held that:- AO is permitted to waive the claim of the assessee and allow appropriate credit for TDS.