2022 (3) TMI 650

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....by the department as well as assessee. MP No.3/Bang/2022 2. The ld. AR submitted that the assessee in its appeal had raised ground Nos. 9 & 10 regarding non-grant of working capital adjustment in determining the ALP for SWD services which are as follows:- "9. That on the facts and in law, the Ld. CIT(A) erred in completely rejecting the working capital adjustment while determining the arm's length price for the SWD services provided by the Assessee which was granted by the Ld. AO/ Ld. TPO even though on a restricted basis. 10. That on the facts and in law, the Ld. CIT(A) erred in disregarding the fact that working capital adjustment is an economic adjustment which would enhance the comparability analysis and ough....

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....for the time value of money lost when credit time is given to the customers. The Assessee however is not an entrepreneur but a captive service provider which is entirely funded by the AEs. The Assessee is running the business without any working capital risk as compared to the comparables and therefore an adjustment is warranted for the differences in working capital. Further, it is submitted that the IT Rules do not provide for the requirement of application of any cap or upper limit to such adjustments. Detailed submissions in this regard are placed at pages 207-209 of the paperbook. Reliance is placed on the decision of this Hon'ble Tribunal in Brocade Communications Systems (P.) Ltd. v. DCIT (Order dated 19.06.2020 passed b....

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....djudicating the above the assessee's appeal recorded a finding in para 29 of its order as follows:- "29. No other ground argued before us with regard to TP matters by the ld.AR in the assessee's appeals. Hence, it is not considered, though ld.AR's submitted to some arguments in its written submissions." 6. However, before us now the ld. AR submitted that the assessee has pressed these grounds during hearing of the appeal which is apparent from the written submissions/synopsis filed by the at pages 12 to 13 before the Tribunal. 7. We have carefully gone through the log book maintained by us and find that there is no whisper about these grounds during the hearing of the appeal, as such the Tribunal recorded a finding in para 29....