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2015 (5) TMI 149 - ITAT BANGALOREComputation of deduction under section 10A - AO and DRP excluding expenses incurred on travel expenses in foreign currency and expenses incurred towards telecommunication expenses from export turnover on the ground that these expenses are incurred in rendering technical services rendered to clients outside India - Held that:- Taking into consideration the decision rendered by the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT] we are of the view that it would be just and appropriate to direct the Assessing Officer to exclude expenses incurred in foreign currency towards travelling and expenses incurred towards telecommunication both from export turnover and total turnover as has been prayed for by the assessee. Addition to total income by way of adjustment to the Arms’ Length Price (“ALP”) to an international transaction - selection of comparables - Held that:- TPO is directed to compute ALP after excluding the 8 comparable companies [Avani Cimcon Technologies Ltd., Celestial Biolabs Ltd.,KALS Information Systems Ltd., Infosys Technologies Ltd., Wipro Ltd., Tata Elxsi Ltd.,Thirdware Solutions Ltd.,. Lucid Software Ltd.] as not functionally comparable with a software development service provider such as the Assessee - Decided in favour of assessee.
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