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2018 (11) TMI 121 - ITAT DELHITPA - Comparable selection - Held that:- All the three comparables which the Ld. AR submitted to be included as comparables requires a proper verification as the very basis of rejecting the comparables on the ground that the financials were not available seems to be not proper as there is database available in public domain. In fact, quarterly database of the comparable R system is available. Thus, it will be appropriate to remand back this issue for verifying these three comparbles to be included in the final list of comparables to the file of the TPO/AO. The issue is remanded back to the file of the TPO/AO and we direct the TPO that after verifying the database available and after applying the relevant filters, if these three comparables are suitable then the same may be included in the final list of the comparables. Assessee be given the opportunity of the hearing by following principles of natural justice. Working capital adjustment the same needs to be verified properly by the TPO/AO. The appropriate transfer pricing adjustment can only to be made in consonance with the international transaction undertaken by the assessee company during the year under assessment on the basis of its comparability vis-à-vis comparable companies, by providing working capital adjustment to the assessee in view of the provisions contained under Rule 10B(1)(e) also. Matter is required to be restored to the TPO to provide the assessee company the benefit of working capital adjustment for transfer pricing adjustment. Therefore, we remand back this issue to the file of the TPO/AO for proper adjudication.
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