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2017 (8) TMI 1585 - AT - Income TaxTP Adjustment - Comparable selection - taking TNMM as the most appropriate method (MAM) - HELD THAT:- Exclusion of companies from the list of comparables on account of it failing to satisfy the filter of 75% revenues to be from software development services revenue The assessee company, a subsidiary of Microsoft Corporation, USA, is a captive provider of software research and development services to its Associated Enterprises (AEs) for a remuneration of cost plus mark up of 15% , thus companies functionally dissimilar with that of assessee need to be deselected from final list. Working capital computation - HELD THAT:- Following the decision of the co-ordinate bench of this Tribunal in the ease of Moog Controls (India) (P.) Lid. [2015 (11) TMI 1719 - ITAT BANGALORE] , we direct the TPO/AO to allow the actual adjustment towards the differences in working capital position between the assessee and the companies in the final set of comparables. Charging of interest u/s 234B and 234D - HELD THAT:- The charging of interest is consequential and mandatory and the AO has no discretion in the matter. This proposition has been upheld by the Hon'ble Apex Court in the case of CIT v. Anjum M.H. Ghaswala [2001 (10) TMI 4 - SUPREME COURT] and we therefore uphold the action of the AO in charging the said interest.
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