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2015 (6) TMI 1182 - ITAT BANGALOREDeduction u/s 10A - computation of deduction - HELD THAT:- The issue is covered in favour of the assessee by the decision of the jurisdictional High Court in the case of Tata Elxsi [2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it was held that where any expenditure is required to be reduced from export turnover, then the same has to be excluded from total turnover as well, which is binding on us and therefore, respectfully following the said judgment, we direct the Assessing Officer (AO) to exclude the said amount from both the export turnover as well as the total turnover for the purpose of computing deduction u/s 10A of the Act. Not granting set off of unabsorbed depreciation brought forward from earlier years against the income arrived at after allowing deduction u/s 10A - HELD THAT:- As decided in YOKOGAWA INDIA LTD. [2011 (8) TMI 845 - KARNATAKA HIGH COURT] income of the section 10A unit has to be excluded before arriving at the gross total income of the assessee. The income of the section 10A unit has to be deducted at source itself and not after computing the gross total income. The total income used in the provisions of section 10A in this context means the global income of the assessee and not the total income as defined in section 2(45). Hence, the income eligible for exemption under section 10A would not enter into computation as the same has to be deducted at source level. TP adjustment - comparable companies adopted by the TPO for determining the ALP and making addition of the adjustment - HELD THAT:- Assessee is providing software design and development services to its parent company thus companies functionally dissimilar with that of assessee need to be deselected from final list. Companies not satisfied the 25% employee cost filter and thus has to be excluded from the list of comparables
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