2023 (6) TMI 609

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.... (i) Enhancement of income by Rs. 2,98,84,072/- holding that the international transactions do not satisfy Arm's Length Price (ALP). (ii) Assailing disallowance of sales and promotion expenses amounting to Rs. 1,05,21, 136/- u/s. 40(a)(ia) of the Act. The assessee has raised additional ground, which is an offshoot of ground No.1. The same reads as under: "1.2 On the facts and circumstances of the case & in law, the Ld. Transfer' Pricing Officer ought to have granted to the appellant the benefit of working capital adjustment on account of the differences in the working capital position of the Appellant vis-a-vis the comparable companies." 3. Shri Rishabh Malhotra appearing on behalf of the assessee submits....

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..../- and u/s. 40(a)(ia) of the Act to Rs. 1,05,21,136/-. The Assessing Officer consequent to the directions of the DRP passed the impugned order. 3.2 The ld. Authorized Representative of the assessee submitted at the outset that in respect of ground No.1 of appeal, he is confining his submissions to the additional ground raised i.e. seeking working capital adjustment and to consider weighted average of current year and preceding two years. He pointed that the data for current year was not available during the assessment proceedings. The ld. Authorized Representative of the assessee submitted that the additional ground of appeal raised by the assessee does not require filing of any additional evidence. All the material documents relevant to....

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....for the first time before the Tribunal that the assessee has raised a plea for grant of working capital adjustment. For adjudicating additional ground no fresh document is required to be adduced. Therefore, we admit additional ground of appeal. Since, the relief sought has been raised for the first time before the Tribunal, we deem it appropriate to restore the additional to the file of Assessing Officer for his consideration. The Assessing Officer is directed to consider the claim of working capital adjustment made by the assessee in the additional ground of appeal and he may also entertain/consider any other legitimate plea raised by the assessee qua transfer pricing adjustment and thereafter, decide the issue, in accordance with law. Thu....