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2018 (8) TMI 1201 - AT - Income TaxTransfer pricing - second round of litigation - de novo determination of the Arms Length Price - fresh benchmarking - selection of comparable - Apart from the fresh search, the TPO redrew the appellant- company’s segmental by: (i) treating the reimbursement of expenses received as part of profit and loss account; (ii) reallocation of certain expenses which were not actuals based on the revenue of each segment; & (iii) treating the provision/liabilities written back as non operative in nature. - Further, the TPO did not allow the benefit of economic adjustments, i.e., working capital and risk, while computing the arms’ length margins of the respective segments of the company. The TPO also made an adjustment on account of period of delay in receipt of payments from AEs. The TPO imputed an Indian based interest at the rate of 10.84% p.a. for the period of delay in receipt of payments from AEs beyond 60 days. Held that:- appeal filed by the assessee is allowed.
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