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2012 (12) TMI 1018 - ITAT DELHITransfer pricing addition - comparable selection criteria - functional similarity - Held that:- The assessee is engaged in the business of provision of software development services. The assessee in the relevant previous year entered into the international transaction of rendering the software development services to its associated enterprise. Unrelated enterprise having controlled transaction can not be considered as comparable to the assessee while applying TNMM. As a company having substantiated related party transaction, may influence the profits of the company - enterprise is to be considered as uncontrolled for the purpose of benchmarking analysis of the ratio of related party transaction to the relevant base i.e. sales or cost does not exceed the limit of 25%. The related party transaction referred here are those which have a bearing on the net profit of the enterprise. Computation of deduction u/s. 10A. - Held that:- We hold that freight telecommunication or insurance charges during the year that are reduced from the export turnover, then such sum will also have to be reduced from the total turnover of the company for the purpose of computation of deduction u/s. 10A.
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