Assessee company was engaged in rendering marketing support services (MSS) to its Associated Enterprises (AEs).\u00a0 It was also providing microsoft consultancy services and product support services. Assessing officer excluded a comparable company selected by assessee on ground that said company had a different financial year ending. Tribunal held that\u00a0 if a company was otherwise functionally similar, then it could not be rejected only on ground of having a different financial year ending-Whether, therefore, this comparable was to be accepted as valid comparable.\u00a0 TPO applied related party transactions (RPT) filter of 25 per cent in case of assessee. comparable company having RPT of more than 50 per cent, could not be accepted as valid comparable.\u00a0 Tribunal held that\u00a0 working capital adjustment was allowed to assessee in earlier assessment year 2007-08-Whether, therefore, TPO was to be directed to allow working capital adjustment to assessee during relevant year as well. (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Comparable-Functionally similar it could not be excluded-TPO applied RPT filter of 25 per cent in case of assessee company, comparable company having RPT of more than 50 per cent could not be accepted as valid comparable-Working capital adjustment is allowed. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20929","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5rz","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20929"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20929\/revisions"}],"predecessor-version":[{"id":20930,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20929\/revisions\/20930"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}