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2020 (1) TMI 1623 - ITAT PUNEAddition on account of Sales Tax exemptions - assessee claimed exemption on account of Sales Tax and Purchase Tax subsidy and treated the same as capital receipt - AO held the same as revenue in nature - HELD THAT:- We find the order of this Tribunal in assessee's own case for A.Y. 2009-10 [2017 (5) TMI 1513 - ITAT, PUNE] held that the receipt on account of Sales Tax and Purchase Tax is capital in nature - As discussed above, the CIT(A) while adjudicating the issue placed reliance on the order of this Tribunal in assessee's own case for A.Ys. 2006-07, 2007-08 and 2008-09 held that the assessee is entitled to claim exemption on account of Sales Tax and Purchase Tax, therefore, we find no infirmity in the order of CIT(A) and it is justified. Thus, ground Nos. 1 to 6 raised by the Revenue are dismissed. TP Adjustment - action of CIT(A) in excluding functionally companies in the field of software services - HELD THAT:- Companies functionally dissimilar with that of assessee need to be deselected from final list. As accepted filter to take RPT is only 25% companies companies exceeding it need to be rejected. Allocate unallocable expenses to each segment in proportion to segmental turnover to total turnover - HELD THAT:- As for A.Y. 2010-11 [2019 (5) TMI 97 - ITAT PUNE] TPO included certain companies on segmental basis in the list of comparables in the software development services segment as well as the other segments of the assessee. While calculating the operating profits of the relevant segments of these companies, the TPO did not take into their unallocated expenses. The Tribunal held all common expenses cannot be apportioned in the universal ratio of sales or gross revenue from different segments, each having its own separate features and characteristics and the allocation depending upon the nature of expenses and appropriate allocation key and directed the AO/TPO to allocate common unallocated expenses on the basis of relevant keys as the case may be after allowing an opportunity of hearing to the assessee. Disallowance made u/s. 40(a)(i) - HELD THAT:- As relying on assessee own case for A.Y. 2010-11 [2019 (5) TMI 97 - ITAT PUNE] Tribunal remanded the similar issue to the file of AO for deciding the same afresh in the light of filing of additional evidences by the assessee and prayed to remand the same to the file of AO.
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