TMI Blog2016 (6) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... al adjustment is incorrectly computed - HELD THAT:- Tribunal had allowed the ground of the assessee, though second part of the ground was not specifically dealt with. Not dealing with the second part of the ground regarding incorrect computation of working capital is a mistake apparent on record. There can be no dispute that working capital adjustment has to be calculated from the final list of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not adjudicated. 02. Ld. AR submitted that ground no.7(i) was not fully adjudicated by the Tribunal. According to him, assessee had taken a plea that working capital adjustment should be granted as per actual for final comparables and should not be restricted to 0.23%. As per the Ld. AR, this Tribunal had committed a mistake when it directed the AO to give a limited working capital ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in the order is reproduced hereunder : 41. Ld. AR supporting its ground 7(i) submitted that working capital adjustment though directed by the TPO to be given in the order passed u/s.92CA of the Act, was not given by the AO, when he passed the assessment order. Vis-a-vis working capital adjustment that was required to be made, observations of the TPO were as under : The Balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party scenario, the entire payables/advances cannot be considered in working capital adjustment as in any business there is an optimum working capital that can be found out only on the basis of comparison with third parties as third parties alone represent the optimum working capital requirement. Accordingly the working capital adjustment is restricted to 0.23%. 42. It is clear that TPO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculated from the final list of comparables and cannot be restricted. We therefore modify para 43 of the order and direct the AO / TPO to give working capital adjustment based on actual figures computed from the final list of comparables. 07. In the result, the MP filed by the assessee is allowed. Order pronounced in the open court on 3rd of June, 2016. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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