Case Law Details
Evolving Systems Networks India Pvt. Ltd. Vs DCIT (ITAT Bangalore)
The only other ground pressed was with regard to the action of the TPO in treating provision for bad and doubtful debts as part of non operating expense while computing operating margin of comparables.
Karnataka High Court has also taken a view in the case of Business Process Outsourcing India Pvt. Ltd., (supra) that provision for bad and doubtful debts should be taken as operating expenses while computing profit level indicator of the comparable companies. In the light of the aforesaid decisions which have been cited at the time of hearing of the appeal, we are of the view that the claim of the assessee deserves to be accepted
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is a Miscellaneous Petition (MP) filed by the assessee under section 254(2) of the Income Tax Act, 1961 (hereinafter called ‘the Act’) praying that there are apparent mistakes in the order of the Tribunal which requires to be rectified.
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