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2015 (11) TMI 1662 - AT - Income TaxDeduction u/s. 10A in respect of disallowance made u/s.40(a)(ia) and 43B - Held that:- The authorities below have erred in not appreciating the fact that the amount disallowed u/s. 40(a)(i) and 43B results in higher business income of the assessee. Therefore, the deduction u/s. 10A ought to have been granted. The Ld. Counsel contended that the DRP has erred in holding that the allocation of various expenses by the assessee between eligible and non-eligible units are without any proper basis. The DRP further erred in appropriating the actual expenses incurred by individual unit on turnover basis. The authorities below have failed to take into consideration the fact that these expenses relate to the individual units and hence there was no reason to appropriate the same on the basis of turnover of each unit. The Ld. Counsel contended that similar issue had come up before the Tribunal in assessee’s own case in the assessment year 2007-08. The Tribunal decided the issue in favour of the assessee correctly. Addition u/s. 92CA by substituting some new comparables and rejecting the entities, selected by the assessee as comparables for determining ALP - Held that:- The assessee is engaged in providing software development services, ITES and sales support services, thus companies dissimilar with that of assessee need to be deselected from final list of comparable.
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