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2021 (10) TMI 1244 - ITAT HYDERABADTP Adjustment - ALP determination at entity level - authorities have computed entity level margin while determining the impugned Arm's Length Price (ALP) adjustment pertaining to software development services resulting in addition - HELD THAT:- We note in this factual backdrop that instant issue of Chapter X computation to be restricted to the assessee's international transactions only is no more res integra in light of decision in CIT Vs. Firestone International (P) Ltd. [2015 (6) TMI 1123 - BOMBAY HIGH COURT]. We thus decline Revenue's vehement arguments supporting the learned lower authorities' action computing the assessee's impugned ALP at entity level than only pertaining to its international transactions with the AEs involving an amount in issue. We accordingly find prima facie merit in the assessee's instant foregoing argument and restore the instant former issue back to Transfer Pricing Officer (TPO) for his afresh adjudication as per law within three effective opportunities of hearing. Interest on receivables at ALP adjustment computed as per the SBI short term deposit rate - We find from a perusal of the TPO's order dt. 29.10.2019 page 61 that he appears to have gone by earlier estimation only whilst determining a credit period of 30 days only. As in Technimont ICB Limited [2013 (1) TMI 948 - ITAT MUMBAI] that an AE itself does not form a comparable since the corresponding transactions would be rendered as controlled ones only. We thus delete the impugned ALP adjustment on receivables in principle and leave it open for the TPO to verify necessary facts as per law.
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