Compute working capital adjustment using OECD methods: ITAT upheld DRP direction

ITO Vs M/s H&S Software Development & Knowledge Management Centre Pvt. Ltd. (ITAT Delhi) In the present case, it appears that the assessee furnished the calculation for adjustment on account of working capital before the ld. DRP who after considering the submissions of the assessee and the guidelines provided by OECD for the computation of working capital adjustment directed the TPO to do needful. As regards to the objection of the TPO that the assessee had not demonstrated that there was a difference in the levels of working capital employed by it vis-à-vis the comparables which affe...