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2016 (6) TMI 1375
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....mber And Shri. Vijaypal Rao, Judicial Member Assessee by : Shri. Padamchand Khincha, CA Revenue by : Shri. S. R. Kurrppusamy, JCIT ORDER Abraham P. George, Vide this miscellaneous petition grievance raised by the assessee is that ground regarding working capital adjustment to be given on final comparables was not adjudicated. 02. Ld. AR submitted that ground no.7(i) was not....
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....) the lower authorities have erred in not giving working capital adjustment in the final assessment order even though it was given in order passed u/s.92CA. Even otherwise, working capital adjustment is incorrectly computed." 05. Observation of the Tribunal in relation to the above ground appearing in the order is reproduced hereunder : 41. Ld. AR supporting its ground 7(i) submitted t....
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....cannot be factored in reducing the sales price and less sales price cannot be defended on the ground that due to negative cost of capital it is managing to have arm's length profit margin even if it is having low profit margin oil activity as discussed in the example given above. In a related party scenario, the entire payables/advances cannot be considered in working capital adjustment as in ....
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....he 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 comparables and cannot be restricted. We therefore modify para 43 of the order and direct ....