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2021 (11) TMI 1138 - AT - Income TaxTP Adjustment - Comparable selection - Turnover filter - HELD THAT:- Companies listed whose turnover in the current year is more than ₹ 200 Crores should be excluded from the list of comparable companies. Also companies dissimilar with assessee captive service provider providing services only to its associated enterprise need to be deselected. Negative working capital adjustment - HELD THAT:- We find that in the case of Software AG Bangalore Technologies (P.) Ltd.[2016 (3) TMI 1384 - ITAT BANGALORE] passed by this Tribunal, it has been held that negative working capital adjustment shall not be made in case of a captive service provider as there is no risk and it is compensated on a total cost plus basis. Since the issue has not been dealt with by the TPO in proper perspective and since the issue has not been raised before the DRP, we deem it fit and proper to remand this issue to the TPO/AO for fresh consideration in the light of the law on the issue as laid down in judicial decision. Levy of education cess - HELD THAT:- education cess and secondary and higher education cess is not in the nature of tax which is not deductible expenditure. Following the decisions APTEAN INDIA PVT. LTD. [2020 (11) TMI 958 - ITAT BANGALORE], SESA GOA LIMITED, [2020 (3) TMI 347 - BOMBAY HIGH COURT], RECKITT BENCKISER (I) PVT. LTD. [2020 (6) TMI 474 - ITAT KOLKATA] we allow the additional ground of appeal.
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