TMI Blog2021 (6) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Revenue : Ms. Neera Malhotra, CIT (DR) ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present cross appeals has been filed by assessee against final assessment order dated 13/11/2015 passed by Ld.DCIT Circle 5(1)(1), Bangalore under section 143(3) read with 144C(3) of the Act on following grounds of appeal: IT(TP)A No.367/Bang/2016 1. The direction of the Dispute Resolution Panel are opposed to the law and not on the facts and circumstances of the case. 2. On the facts and circumstances of the case, the Ld.DRP erred in directing the Assessing officer to reduce the expenditure incurred in foreign currency, both from the Export Turnover as well as total Turnover for the purpose of computation of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is availing tax holiday under Section 10A of the Income Tax Act, there is no intention to shift the profit base out of India and accordingly there is no motive for tax avoidance; 2. The Learned Transfer Pricing Officer/Hon'ble Dispute Resolution Panel have grossly erred by arbitrarily rejecting the companies selected /accepted by the Appellant as comparables on unjustifiable grounds. 3. The learned Transfer Pricing Officer has grossly erred by disregarding the functional profile of the Appellant and comparing it with a company having different functional profile and the Hon'ble Dispute Resolution Panel has erred in confirming the same. 4. The Hon'ble Dispute Resolution Panel has grossly erred in applying 'ons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, representative of assessee appeared before the Ld. AO and filed requisite details as called for. 3. The Ld.AO observed that, assessee had international transactions with associated enterprises exceeding Rs.15 crores, and therefore, reference was made to the Transfer Pricing officer under section 92C of the Act. 4. On receipt of reference, the Ld. TPO called upon assessee to file the economic details of international transaction with its associated enterprises. 5. The Ld. TPO from the details filed, observed that, assessee is a wholly owned subsidiary of Continuous Computing Corporation, USA, and it is established in India mainly to assist and support the business of its AE through development and support of computer software t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertook fresh search and selected following final set of 13 comparables with average margin of 24.82%. S1.No Name PLI 1 Acropetal Technologies Ltd.(seg) 31.98% 2 e zest solutions (from Capitaline) 21.03% 3 E-infochips Ltd 56.44% 4 Evoke (from Capitaline) 8.11% 5 ICRA Techno Analytics Ltd. (in 000) 24.83% 6 Infosys Ltd 43.39% 7 Larsen Toub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A Techno Analytics Ltd. Infosys Technologies Ltd. Tata Elxsi Ltd. Mindtree Ltd. RS Software Ltd. Larsen and Toubro Infotech Ltd. Evoke Technologies Ltd. 12. DRP also allowed the plea of assessee regarding computation of deduction under section 10A of the in accordance with the decision of Hon ble Karnataka High Court in case of CIT vs Tata Elxsi Ltd. (supra) 13. On receipt of the order passed by DRP, the Ld.AO, passed the final assessment order. 14. Aggrieved by the final assessment order passed by Ld.AO, assessee as well as revenue are in appeal before us now. 15. At the outset, both sides submitted that appeal filed by revenue is not maintainable due to low tax effect. 16. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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