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2016 (9) TMI 1514 - ITAT HYDERABADTPA - rejection of use of contemporarious data and multiple year data - HELD THAT:- This ground is rejected as it has been held in a number of cases by the Coordinate Benches of this Tribunal that it is only the data pertaining to the relevant financial year that has to be considered for determination of the ALP and multiple data is not to be considered. Comparable selection - HELD THAT:- Assessee is a software development services company thus companies functionally dissimilar with that of assessee need to be deselected from final list. Treatment to provisions for bad and doubtful debts of the comparable companies as part of their operating expenses - HELD THAT:- Bad debts and the provision for bad and doubtful debts are part of the operating expenses and are to be taken into consideration while computing the comparable companies. See KENEXA TECHNOLOGIES (P.) LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -2 (1) , HYDERABAD [2014 (11) TMI 587 - ITAT HYDERABAD] - we direct the AO to treat the provisions for bad and doubtful debts of the comparable companies as part of their operating expenses and to re-compute the margins of the comparable companies accordingly. This ground of appeal is treated as allowed for statistical purposes. Non-allowing of deduction u/s 10A - voluntary TP adjustment offered by the assessee - not considering the revised return filed by the assessee for computing the deduction u/s 10A - HELD THAT:- We find that this issue is covered in favour of the assessee by the judgment of iGATE Global Solutions Ltd [2014 (6) TMI 1007 - KARNATAKA HIGH COURT] we direct the AO to allow the deduction u/s 10A of the Act on the ALP adjustment voluntarily offered by the assessee Exclusion of the internet connection charges only from the export turnover while computing deduction u/s 10A - HELD THAT:- We direct the AO to exclude them from both the export turnover as well as total turnover for the purpose of computation u/s 10A as held in the case of Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT. This ground of appeal is accordingly allowed. Levy of interest u/s 234B and 234C is consequential in nature - AO is directed to give consequential relief to the assessee, if any, while giving effect to this order.
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