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2015 (9) TMI 1553 - ITAT BANGALORETPA - selection of comparable - Held that:- Transfer pricing was an evolving area and therefore an assessee, just because it had included certain comparables in its own list, could not be held back from seeking exclusion of such comparables, once proper reasons for seeking such exclusion were shown by it. Accordingly we are inclined to admit the additional grounds. Assessee offers a wide range of professional software development services and IT services through 4 distinct service offerings, thus companies functionally dissimilar with that of assessee need to be deselected from final list of comparable. Exclusion of expenditure incurred in foreign currency expenditure while working out the eligible relief u/s.10A - Held that:- As for the contention of the assessee foreign currency expenditure ought not to be excluded from the export turnover, we are unable to accede to. This is because of the definition of ‘export turnover’ given in Explanation 2 (iv) to Section 10A does not warrant such an interpretation. However in respect of parity between the export turnover and total turnover, in view of the decision of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT] assessee has to succeed. We direct the AO / TPO to exclude what has been excluded from the export turnover from the total turnover also while computing deduction u/s.10A Deduction / exemption given u/s.10A has to be considered independently without setting off of loss incurred in other undertakings of the assessee. See CIT (LTU) v. Yokogawa India Ltd [2011 (8) TMI 845 - Karnataka High Court ] Depreciation on computer software - Held that:- Assessee has not been able to establish that computer software and related hardware acquired by it did not give it the benefit of enduring nature. However we are of the opinion that once it was treated as a part of computer, assessee was eligible for depreciation at 60%. Ordered accordingly, Grounds treated as partly allowed. Interest income earned - income from other sources OR profits and gains from business or profession - Held that:- Assessee in our opinion has not been able to show the nexus of its interest income with its business activities. Unless nexus with business is shown by the assessee, interest income will always fall under the head ‘income from other sources’. We do not find any reason to interfere with the orders of lower authorities in this aspect.
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