Transfer Pricing Addition Deleted for Ignoring Binding ITAT Directions

Red Hat India Private Limited Vs ACIT (ITAT Mumbai) Working Capital Adjustment Mandatory — ITAT Deletes ₹4.23 Cr TP Addition in Red Hat India Case The Mumbai Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and deleted the sole surviving transfer pricing adjustment of ₹4.23 crore, holding that denial of working capital adjustment was contrary to binding directions issued by the Tribunal in the first round of proceedings. The case arose in the second round of litigation pursuant to earlier ITAT directions requiring the Transfer Pricing Officer to grant working ca...