TMI Blog2020 (7) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... he working capital adjustment has not been considered or examined by the lower authorities, we feel it appropriate to restore this limited issue whether the adjustment for delayed receivables from associated enterprises get subsumed in working capital adjustment, to the file of the learned Assessing Officer/Transfer Pricing Officer for adjudicating in accordance with law. It is needless to mention that assessee shall be afforded adequate opportunity of being heard. Appeal of the assessee is allowed partly for statistical purposes. - ITA No. 6387/Del./2016 - - - Dated:- 23-7-2020 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER For the Appellant : Shri Ravi Sharma, Adv. Shri Rishabh Malhotra, Adv. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular issued under Foreign Exchange Management Act ( FEMA ) All the above grounds are without prejudice to each other. The appellant carves leave to add to and / or to alter, amend, rescind, modify, the grounds herein above or produce further documents before or at the time of hearing of the appeal. 2. Briefly stated facts of the case are that the assessee company was engaged in providing information technology enabled services to its associated enterprises from hundred percent export-oriented units in software technology Park under the scheme of Ministry of Information Technology, Government of India. For the year under consideration, scrutiny assessment was completed after taking into account, the benchmarking o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel of the assessee filed a paper-book containing pages 1-446 along with other documents filed electronically. 4. The learned counsel did not press ground No. 1 and 2 of the appeal, according ground No. 1 2 are dismissed as withdrawn. 5. As regard to ground Nos. 3 to 5 of the appeal, the learned counsel submitted that during the transfer pricing proceeding the assessee submitted PLI of the comparables after carrying out working capital adjustment, which is much less than the PLI the assessee. He submitted that working capital adjustment is an economic adjustment made under rule 10BE(iii) of the Income-tax Rules, 1962 and which takes care of the difference in the receivables outstanding of the assessee vis- -vis the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e international transaction of provision of information technology enabled services reported by the assessee. As the effect of the working capital adjustment has not been considered or examined by the lower authorities, we feel it appropriate to restore this limited issue whether the adjustment for delayed receivables from associated enterprises get subsumed in working capital adjustment, to the file of the learned Assessing Officer/Transfer Pricing Officer for adjudicating in accordance with law. It is needless to mention that assessee shall be afforded adequate opportunity of being heard. The ground No. 3 of the appeal is accordingly allowed for statistical purposes. The ground Nos. 4 and 5 are rendered merely academic, as both the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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