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2021 (7) TMI 582 - AT - Income TaxRectification of mistake - ALP adjustment in respect of ITeS services - assessee’s contention that the margin of the international transaction of the assessee was 37.54% and that the Average Margin of the comparables adopted by the TPO was 33.13% - HELD THAT:- Since the assessee’s margin was higher than the Mean Margin of the comparables, the functional dissimilarities or otherwise of the comparable companies was not necessary to be considered and the assessee had agreed for the same at the time of hearing. Even at the time of hearing of the M.A, the learned Counsel for the assessee submitted that the assessee is not pressing this point for rectification. Therefore, on this issue we do not find any mistake which needs rectification. Interest on advances for investment to AEs - We find that in the assessee’s own case for the earlier A.Ys [2017 (12) TMI 301 - ITAT HYDERABAD] Tribunal has set aside the issue to the file of the AO/TPO with a direction to consider the same denovo. Since facts and circumstances are similar and the assessee had relied upon the same during the course of hearing but the same has not been considered, we agree that there is a mistake apparent from record which needs rectification. Mistake on account of interest on outstanding receivables - We find that while determining the ALP adjustment of ITeS services, we had observed that the Assessing Officer had given the negative working capital adjustment. But the working capital adjustment takes care of the interest on receivables as on the closing date of the accounting year and does not take care of the interest on delayed receivables during the relevant year. Therefore, we do not see any mistake in the order of the Tribunal on this issue and the assessee’s argument is accordingly rejected.
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