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TMI Blog2012 (9) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover of 8.29 crores. So the said company is rightly excluded from the list of comparables. But however, as regards other comparables with both high margin and low margin companies, we are of the opinion that the CIT(A) ought to give reasoning before excluding the same. As the order of the CIT(A) is silent as regards the reason for their exclusion, we deem it fit and proper to remit the issue back to the file of the CIT(A) for reconsideration - ITA No. 405/Bang/2011 And ITA No. 523/Bang/2011 - - - Dated:- 21-9-2012 - P. Madhavi Devi (Judicial Member) And Jason P. Boaz (Accountant Member) For the Petitioner : S. K. Ambastha For the Respondent : C. Ramesh ORDER P. Madhavi Devi (Judicial Member) These are cross ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment proceedings u/s 143(3) of the Act, the AO disallowed the claim of the assessee u/s 10A of the Act as the income arrived at after reducing the loss for the assessment year 2002-03 set off by the asseessee was Nil . 5. Aggrieved, the assessee preferred an appeal before the CIT(A) stating that while computing the total income, the deduction u/s 10A has to be allowed first and later on, set off of brought forward losses and unabsorbed depreciation are to be set off. The CIT(A) however confirmed the order of the AO. 6. Aggrieved the assessee is in second appeal before us. 7. The learned counsel for the assessee Shri C Ramesh reiterated the submissions made by the assessee before the authorities below and has drawn our attenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A), raising the same objections that were raised before the TPO relating to the filters adopted by the TPO and also the exclusion of the comparables identified by the assesee and inclusion of the companies whose information was not available in public domain. The CIT(A) after considering the assessee s objections excluded super profit making companies from the final comparables adopted by the TPO and also excluded the comparables with lower margins for making the TP adjustment. Against the exclusion of the super profit marking companies, the Revenue is in appeal before us, while the assessee is in appeal against the exclusion of comparables having lower margins. 12. The learned counsel for the assessee submitted that the various Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les and the low profit making comparables from the list of comparables adopted by the TPO. We find that the CIT(A) has not given any reasoning for such exclusion. We find that various Benches of the Tribunal have held that super profit making companies have to be excluded from the list of comparables while determining the arms length price. But however for arriving at the conclusion that these companies are to be excluded, the CIT(A) is bound to give the reasoning. As far as Infosys is concerned, we find that it satisfies the turnover filter, as its turnover is 6,850 crores as against the assessee s turnover of 8.29 crores. So the said company is rightly excluded from the list of comparables. But however, as regards other comparables with b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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