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2018 (1) TMI 453 - AT - Income TaxTPA - comparable selection criteria - Held that:- TCG Lifesciences Ltd. and Transgene Bioteck Ltd. both are functionally dissimilar. They are having intangible assets which are owned by both the companies. There is high risk involved by both the comparables. These are functionally dissimilar because they are into Pharmaceutical Industry and not in Auto Mobile Industry. Thus, both these comparables needs to be excluded. Therefore, the TPO/A.O is directed to exclude these two comparables. The order of the ITAT in the assessee’s own case for Assessment Year 2005-06. In this particular year also, the working capital adjustment was not considered by TPO, therefore, ITAT directed the TPO to do the needful by taking into account of the relevant factors which was ignored on the earlier occasions. However, it would have to be decided fresh only after the fresh comparables are chosen by the TPO which are similar to the function segment and ownership of the assets.
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