TMI Blog2017 (11) TMI 1895X X X X Extracts X X X X X X X X Extracts X X X X ..... of such comparables after providing adequate opportunity of being heard to both sides. Hence the entire TP matter is restored back to the file of DRP for fresh decision. Computing of deduction u/s. 10A - Reducing the expenditure incurred in foreign currency both from export turnover as well as total turnover - HELD THAT:- This issue is squarely covered in favour of the assessee by the judgment of Hon'ble Karnataka High Court rendered in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] held that total turnover is sum total of export turnover and domestic turnover and therefore, if an amount is reduced from export turnover then total turnover also goes down by the same amount. Respectfully following th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer Pricing ( TP ) documentation maintained and the detailed benchmarking analysis conducted by the Appellant; 3. The Honourable DRP has erred in law in upholding the action of the TPO in modifying the filters adopted by the Appellant and adopting additional filters for undertaking a new search and arriving at a fresh set of comparables; 4. The Honorable DRP and the learned AO have erred in upholding the action of the TPO in disregarding the multiple / prior year data considered by the Appellant in determining the ALP and adopting the financial data for a single year [i.e. the financial year ( FY ) 2009- 10] of the comparables; 5. The Honorable DRP has erred in upholding the action of the TPO in finalizing the TP order with the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omit, substitute or amend the above grounds, at any time before or at the time of hearing of the appeal. Each of the above objections is independent and without prejudice to the other grounds preferred by the Appellant. 3. Similarly the grounds raised by the revenue are as under: 1. The directions of the Dispute Resolution Panel are opposed to law and facts of the case. 2. On the facts and in the circumstances of the case the Dispute Resolution Panel erred in law in directing the AO to exclude the expenditure incurred in foreign currency both from the export turnover as well as from total turnover for the purpose of computation of deduction u/s 10A, without appreciating the fact that the statute allows exclusion of such expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excluding M/s ICRA Techno Alalytics Ltd M/s Persistent Systems Solutions Ltd, M/s Sasken Communications Technologies Ltd and M/s Persistent Systems Ltd while the comparables are qualifying all the qualitative and quantitative filters applied by the TPO. 8. On the facts and in the circumstances of the case, whether the Hon'ble Dispute Resolution Panel is correct in excluding INFOSY Ltd and Kals Information Systems Ltd. on the basis of decision in a different case for a different FY while the comparable is qualifying all the qualitative and quantitative filters applied by the TPO. 9. On the facts and in the circumstances of the case, whether the application of a new filter (Onsite Filter) is within the purview of Hon'ble Dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filter. In reply, it was submitted by ld. AR of assessee that regarding only one comparable i.e. M/s. RS Software India Ltd., the DRP has applied this new filter and excluded this comparable and the assessee as well as revenue both are in appeal against the exclusion of this comparable and therefore, this should be held that this filter is not applicable in the present case. The ld. DR of revenue supported the order of TPO and Draft assessment order. 5. We have considered the rival submissions. We find that as per para no. 3.5 of its order, it is noted by DRP that considering the fact that the objections are raised by the assessee in respect of higher margin comparables, it was found appropriate by them to examine other companies selecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objections such as functional similarity / dissimilarity etc. also to decide about inclusion or exclusion of such comparables after providing adequate opportunity of being heard to both sides. Hence the entire TP matter is restored back to the file of DRP for fresh decision. 6. In addition to TP issue, one corporate tax issue is also raised by the revenue as per ground nos. 2 and 3 and this issue is regarding reducing the expenditure incurred in foreign currency both from export turnover as well as total turnover for the purpose of computing of deduction u/s. 10A of the I.T. Act. This issue is squarely covered in favour of the assessee by the judgment of Hon'ble Karnataka High Court rendered in the case of CIT v. Tata Elxsi Ltd. [201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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