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2018 (5) TMI 1784 - AT - Income TaxTPA - transfer pricing adjustment on account of management fees and communication cost - Held that:- We find that in assessment year 2008-09 similar ground relating to payments for meeting expenditure, travel cost, stock cost, etc. were disallowed by the TPO. Tribunal in appeal filed by assessee [2017 (4) TMI 866 - ITAT PUNE] remitted the issue back to the file of Assessing Officer/TPO to decide the issue afresh. One of the contentions of the assessee is that these costs have been recovered as arrangement for remuneration is cost plus mark-up. TPO as well as DRP has failed to take note of this fact. Thus, this issue needs revisit to the file of TPO/Assessing Officer for reconsideration. TPO/Assessing Officer shall grant reasonable opportunity of hearing to the assessee before deciding this issue afresh, in accordance with law. Comparable selection - functinal similarity - rejection of Goldstone Technologies Limited being a loss making entity - Held that:- It is a well settled proposition that only persistent loss making companies have to be excluded from the list of comparables. Nowhere it has been urged by the Revenue that the aforesaid company is functionally dissimilar or does not qualify the filters adopted by the TPO for selection of the comparables. We further observe that Goldstone Technologies Limited was selected as one of the comparables by the assessee in immediately preceding assessment years i.e. assessment year 2008-09. TPO has not raised any objection to the inclusion of such company in the assessment year 2008-09. Thus, in view of the facts discussed above, we are of considered view that the Goldstone Technologies Limited deserves to be included in the list of comparables. Companies functinlly dissimilar with that of assessee need to be deselected from final list. Errors in computation of working capital adjustment in relation to international transactions - Held that:- The assessee has purportedly filed application u/s. 154 for rectification of the mistake in computation of working capital adjustment. The Assessing Officer is directed to expeditiously dispose of the application of the assessee filed u/s. 154 of the Act. We direct the Assessing Officer to grant risk adjustment to the assessee to iron out difference on this account with the comparables. Re-computation of voluntary transfer pricing adjustment in respect of sales support services - Held that:- We find that the DRP is silent on the objections raised by the assessee qua provision of sales support services. Therefore, we deem it appropriate to remit this issue back to the file of DRP for deciding the objections raised by the assessee in respect of sales support services. Charging of interest u/s. 234A for late furnishing of return of income - Held that:- As the assessee has pointed that the last date for filing return of income was extended to 31-10-2009 and the assessee filed return of income on 30-10-2009. Thus, there was no delay in filing of return of income. This fact requires verification. Accordingly, we remit this issue back to the file of Assessing Officer for ascertaining the last date for filing return of income. If the assessee has filed return of income within the extended period, the interest u/s. 234A is not to be charged.
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