TMI Blog2017 (1) TMI 1811X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [ 2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it was held that the total turnover is the sum total of export turnover and domestic turnover and therefore, if an amount is reduced from the export turnover then the total turnover also automatically goes down by the same amount. Hence, we decide this issue in favour of the assessee and the A.O. is directed to recomputed the amount of deduction allowable u/s 10A in the light of this judgment of the Hon ble Karnataka High Court. TP Adjustment - MAM - claim of consideration of internal TNMM - HELD THAT:- We find force in the submission of the ld. AR of the assessee that this issue should go back to the file of the TPO for fresh decision because this was the claim of the assessee be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on incorrect interpretation of law and therefore, are bad in law. 2. On the facts and circumstances of the case and in law and based on directions of DRP, the ld. AO erred in assessing the total income at Rs.14,774,120 as against returned income of NIL computed by the appellant. Corporate Tax grounds 3. The ld. AO has erred in la and on facts by not considering the plea that since the appellant is not rendering any technical services outside India, foreign currency expenditure incurred by the appellant should not be reduced from export turnover for the purpose of computing the deduction u/s 10a of the Act. 4. The ld.AO has erred in law by not considering the plea of the appellant that if communication expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, by ignoring/disregarding the economic analysis undertaken by the appellant (using internal TNMM/CPM) in accordance with the provisions of the Act read with Rules, conducting a fresh economic analysis for the determination of the ALP in connection with the impugned international transaction (using external TNMM) and holding that the appellant s international transactions are not at arm s length. 11. The ld. AO/TPO have erred in law and on facts by ignoring the fact that since the appellant is availing tax holiday u/s 10A of the Act, there is no motive or reason to shift profits out of India, curbing which, is the basic intention of introducing the TP provisions. 12. The ld. AO/TPO have erred in law and on facts, by failing to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computing the working capital adjustment. 21. The ld. AO/TPO have erred in law and on facts, by not making suitable adjustments to account for differences in the risk profile of the appellant (in the projects where it acts as a contract service provider) vis- -vis the comparables. 22. The ld.AO/TPO have erred in law and facts, in computing the ALP without giving benefit +/- 5% under the proviso to sec. 92C of the Act. 2. The memorandum of appeal by an assessee under section 253(1) of the IT Act, must be accompanied by a fee specified below:- a) where the total income of the assessee as computed by the AO, in the case to which he appeal relates, is one hundred thousand rupees or less, five hundred rupees. b) whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the office of the Appellate Tribunal. 5. If the space provides is found insufficient, separate enclosures may be used for the purpose . It was submitted by the ld.AR of the assessee that ground 1 to 2 are general and ground no.3,5,7 9 are not pressed. Accordingly, these grounds are rejected. 3. Regarding the Corporate tax issue involved in ground no.4 6, he submitted that this issue is covered in favour of the assessee by the judgment of the Hon ble Karnataka High Court rendered in the case of M/s Tata Elxsi Ltd. as reported in 349 ITR 98. 4. Regarding the TP issue, he submitted that ground no.11,13 to 17 are not pressed. Accordingly, these grounds are rejected. Regarding the remaining grounds for TP issue, he subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, by respectfully following this judgment of the Hon ble Karnataka High Court, we decide this issue in favour of the assessee and the A.O. is directed to recomputed the amount of deduction allowable u/s 10A in the light of this judgment of the Hon ble Karnataka High Court. 7. Regarding the TP issue, we find force in the submission of the ld. AR of the assessee that this issue should go back to the file of the TPO for fresh decision because this was the claim of the assessee before the authorities below that internal TNMM of the assessee for its substantial transaction with unrelated parties should also be considered to decide the ALP but this aspect of the matter has been brushed aside by the TPO and DRP. Hence, we set aside the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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