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2021 (1) TMI 160 - ITAT BANGALORETP Adjustment - comparable selection - HELD THAT:- Assessee is providing software development services to its AE which includes developing software, configuration, testing activity. It also deputes its engineers on need basis for providing IT support. Though the assessee has entered into various types of international transactions with its AEs, we are concerned with Software development activity only, since the TPO has made transfer pricing adjustment in respect of software development services only, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Computation of Deduction u/s 10A - Exclusion of expenses incurred in foreign currency from both export turnover and total turnover - HELD THAT:- As decided in case of HCL Technologies Ltd [2018 (5) TMI 357 - SUPREME COURT] when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise, any other interpretation makes the formula unworkable and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well.
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