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2015 (9) TMI 1476 - AT - Income TaxTransfer pricing adjustment - selection of comparable CG–Vak Software and Exports Ltd. - Held that:- No reason to sustain the order of the DRP in rejecting CG–Vak Software and Exports Ltd. as a comparable. Accordingly, we direct the Transfer Pricing Officer to include this company as comparable and determine the arm's length price. In the course of hearing, learned Counsel for the assessee submitted a working indicating the margin of comparables finally selected after including CG–Vak Software and Exports Ltd. as comparable. It was submitted, if CG–Vak Software and Exports Ltd. is included as a comparable, then the arithmetic mean of comparable companies would be 17.60% compared to assessee’s 13.50%. Hence, there would be no need for further adjustment to the arm's length price, as assessee’s margin would be within the tolerance band of ± 5%. Thus, he submitted, there will be no need to adjudicate other grounds on T.P. adjustment. On a perusal of the working submitted before us by the learned Counsel, we find the aforesaid submissions of learned Counsel for the assessee to be correct. In view of the aforesaid, as we have directed the Transfer Pricing Officer to include CG–Vak Software and Exports Ltd. as a comparable, by virtue of which assessee’s margin comes within the range of 5% of average arithmetic mean of comparables requiring no further adjustment, there is no need to adjudicate the other grounds relating to selection / rejection of comparables as well as risk and working capital adjustment raised by the assessee as they are of mere academic interest. However, we leave the issue raised in these grounds open for adjudication if they arise in future in any other assessment year. Short credit of TDS while computing the tax liability - Held that:- We cannot direct the Assessing Officer to give tax credits to the assessee without verifying the factual details. However, considering the fact that assessee has filed petition under section 154 of the Act before the Assessing Officer raising the aforesaid issues which is still pending, we direct the Assessing Officer to consider assessee’s petition under section 154 of the Act on merits and in accordance with law.
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