TMI Blog2016 (9) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer pricing adjustment. On picking up of comparables or selection of comparable companies Transfer Pricing Officer considered the claim of the assessee and excluded M/s Mobil Telecommunications Ltd. and included M/s Aanchal Computers Ltd. The Dispute Resolution Panel simply rejected the objection of the assessee without any further discussion in the order. Thus this Tribunal is of the considered opinion that the DRP, being the fact finding authority with regard to international transaction, is expected to dispose each and every aspect with regard to functional similarity, capital employed by the assessee, etc. for the purpose of determining the arm’s length price. Since the DRP has not discussed anything on material facts, this Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of difference in working capital position of the assessee vis- -vis the comparable companies. According to the Ld. counsel, the Dispute Resolution Panel has to make proper adjustment with regard to working capital employed by the assessee as well as the comparable cases. Referring to the order of the Dispute Resolution Panel, more particularly at para 8, the Ld. counsel submitted that the DRP admitted that the assessee has submitted a detailed argument with regard to working capital adjustment for difference in working capital between the assessee and comparable. The DRP has also admitted that the details of working capital adjusted profit margin were also submitted. However, the same was not considered on the ground that the same wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed the order of the Transfer Pricing Officer. 6. Referring to the ground Nos.6 and 7 with regard to selection of comparables and objection with regard to comparables selected by the TPO and DRP, the Ld. D.R. submitted that the Transfer Pricing Officer examined the matter and found that M/s Mobile Telecommunications Ltd. is not a comparable company , therefore, the same was excluded. However, M/s Aanchal Computers Ltd. was included in the comparable as requested by the assessee. Therefore, according to the Ld. D.R., the DRP found that the material filed by the assessee was considered by the TPO, hence, the same was confirmed. 7. We have considered the rival submissions on either side and perused the relevant material available on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This Tribunal is of the considered opinion that the DRP, being the fact finding authority with regard to international transaction, is expected to dispose each and every aspect with regard to functional similarity, capital employed by the assessee, etc. for the purpose of determining the arm s length price. Since the DRP has not discussed anything on material facts, this Tribunal is of the considered opinion that the matter needs to be reconsidered. Accordingly, the orders of the authorities below are set aside and the issue with regard to selection of comparables, working capital adjustment and objections raised by the assessee with regard to comparables selected by the TPO, are remitted back to the file of the Assessing Officer. The Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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