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2023 (1) TMI 1074 - AT - Income TaxTP Adjustment - Comparable Selection - working capital adjustment - DRP directed for exclusion of 2 out of 9 comparable companies selected by the ld. TPO and upheld the action of the ld. TPO denying working capital adjustment to the assessee - HELD THAT:- It is not in dispute that the claim of working capital adjustment together with its detailed workings were indeed made and submitted by the assessee before the ld. TPO and also before the ld. DRP. This is evident representing submissions made before the TPO and pages representing submissions made before the ld. DRP. The assessee also stated that working capital adjustment had indeed been granted to the assessee either by the ld. TPO or by the ld. DRP, in the earlier years commencing from A.Y. 2011-12 onwards, as the case may be. AR before us drew our attention to the relevant pages of the paper book where working capital adjustment has been granted to the assessee in the past commencing from A.Yrs.2011-12 to 2017-18. In fact, we also find that on the final set of comparables chosen by the DRP, the assessee had given the working capital adjustments for the said comparable companies which has been ignored by the lower authorities. Hence, we deem it fit to restore the issue to the file of the ld. TPO with a direction to grant working capital adjustment to the assessee after examining the workings given by the assessee thereon. The computation of ALP should be done accordingly. Hence, the ground No.7.9 raised by the assessee is allowed for statistical purposes.
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