Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 1143 - AT - Income TaxTPA - comparable selection criteria - Held that:- Companies functionally dissimilar with that of assessee need to be deselected from final list of comparable when compared to assessee as engaged in rendering software services. We find that if the comparables selected by the assessee and approved by us and BCL are considered for benchmarking, the arithmetic average mean would be within the plus/minus 5% limit. In other words, the IT. s entered into by the assessee for the year under appeal would be at Arm’s length. Therefore, we can say that no TP adjustment was required. We also find that the assessee was not given benefit of working capital adjustment. In the case of Capgemini India (P. )Ltd. (2015 (4) TMI 586 - ITAT MUMBAI), it was held that working capital adjustment cannot be denied to the assessee only on the ground that the assessee had not made any claim in the TP study if it is possible to make such adjustment as working capital adjustment will improve the comparability. In our opinion, the claim made by the assessee should have been considered.
|