Provision for doubtful and bad debts to be considered as operating expense in TP calculations

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 expe

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