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2022 (6) TMI 1350 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Companies whose turnover in the current year is more than Rs.200 crores needs to be excluded for the purpose of comparable companies. R.S.Software Ltd., should be excluded from the list of comparables. Rectification of margin of Harbinger Systems Pvt. Ltd. - The weighted average margin of the company was rightly computed by the TPO 14.74%, however in the final list of comparables of the TPO order, the TPO adopted the margin at 15.06%, which is an apparent mistake. We therefore direct the TPO to consider this afresh while recomputing the ALP in the SWD services segment in the light of the directions given in this order. Disallowance of provision for Bad Debts - HELD THAT:- We notice that the party wise details of the bad debts written off as furnished before the DRP- Further the sum was created as a provision in the financial year relevant to assessment year 2014-15 was offered to tax in the said year which fact is substantiated by the relevant extracts of the financial statements and the statement of computation of income for the assessment year 2014-15 that can be seen - Based on these facts we are of the considered view that that the disallowance which was already disallowed in the computation of income of the assessee should be deleted since otherwise the same would result in double disallowance.
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