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2023 (10) TMI 18 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Exclude M/s. Hartron Communications Ltd. from the list of comparables company has extraordinary profits/ losses in subsequent years, thus we are of the substantive opinion that this company cannot be considered as comparable to the assessee's functional profile and accordingly, direct the AO/ TPO to exclude this this comparable for determining ALP. TPO adopting incorrect PLI of one comparable, namely Microland Limited, as' 17.83% as against 9.84% (before working capital adjustment and risk adjustment) resulting in computation of excessive TP adjustment - HELD THAT:- TPO considered the margin in respect of M/s. Microgenetic Systems Ltd. at 17.83%. Similarly, he has considered the margin in the case of Microland Ltd. at 17.83%. The contention of the ld. AR. is that this is a typographical mistake committed by TPO and on earlier occasion, in the first round the TPO considered the margin of Microland Ltd. at 9.84%. In our opinion, this is required to be re-examined by AO/TPO. Accordingly, the issue is remitted to the file of AO/TPO for fresh consideration and take the correct PLI on this comparable. Non-giving of risk adjustment - Since in present case computation of risk adjustment is not provided by the assessee, hence respectfully following the decision of the Bench in the matter of Mercedez [2018 (2) TMI 1975 - ITAT BANGALORE] we send back additional ground no.1, to the file of TPO. Non-giving of working capital adjustment - We are of the opinion that this issue came for consideration on earlier round in . [2019 (4) TMI 2125 - ITAT BENGALURU] remand this issue to the file of the TPO for the calculating the working capital adjustment, if any, in accordance with law and the TPO shall consider all the binding decisions of the High Court/coordinate bench. These grounds are allowed for statistical purpose. We direct the AO/TPO to pass consequential order in conformity with the above direction as Tribunal on earlier occasion as reproduced herein above. Computing tax on assessed income at the erroneous rate of 34.37% (before surcharge and education cess instead of the applicable tax rate of 30% - After hearing both the parties, we are of the opinion that this ground is consequential since we have remitted certain issue involved in this appeal to the file of AO/TPO for reconsideration, as such the computation of tax liability will change accordingly and the AO is directed to recompute all tax liability in accordance with law. Interest u/s 234D - We are of the opinion that this is required to be examined at the end of the AO/TPO passing consequential order. He should see whether any refund is granted to the assessee u/s 143(1) of the Act. If there is no refund granted to the assessee u/s 143(1) no interest u/s 234D of the Act is to be charged.
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