In transfer pricing proceedings, finance and bank charges form part of operating expenses and need to be included while calculating margin of comparables

IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering software development services to AE, matter was to be remanded back for determination of ALP afresh after applying upper filter on turnover of comparables upto Rs. 200 crores and considering only segmental results of those comparables
IT/ILT : In transfer pricing proceedings, finance and bank charges form part of operating expenses and need to be included while calculating margin of comparables
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[2014] 51 taxmann.com 326 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'I'
Cash Edge India (P.) Ltd.
v.
Income-tax Officer, Ward 3 (2), New Delhi*
SMT. DIVA SINGH, JUDICIAL MEMBER
AND T.S. KAPOOR, ACCOUNTANT MEMBER
IT APPEAL NO. 5848 (DELHI) OF 2012
[ASSESSMENT YEAR 2008-09]
SEPTEMBER  12, 2014
Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments) - Assessment year 2008-09 - Whether where TPO made addition to assessee's ALP in respect of rendering software development services to AE, matter was to be remanded back for determination of ALP afresh after applying upper filter on turnover of comparables upto Rs. 200 crores and considering only segmental results of those comparables - Held, yes [Matter remanded]
Section 92C of the Income-tax Act, 1961 - Transfer pricing - Computation of arm's length price (Comparables and adjustments) - Assessment year 2008-09 - Whether in transfer pricing proceedings, finance and bank charges form part of operating expenses and need to be included while calculating margin of comparables - Held, yes [Para 17] [In favour of assessee]