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2015 (11) TMI 1579 - AT - Income TaxEligible deduction u/s.10A - Held that:- We find that CIT (A) had relied on the decision of jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd (2011 (8) TMI 782 - KARNATAKA HIGH COURT ), wherein it was held unequivocally by their Lordships that items excluded from export turnover had to be excluded from the total turnover also while working out the eligible deduction. TPA - selection of comparable - Held that:- Infosys Ltd could not be considered as a comparable, as it was a giant company in the area of development of software, assuming all risks leading to higher profits. Kals Information Systems Ltd company cannot be selected as a comparable as it was engaged in development of software and software products. Persistent Systems and Solutions Ltd DRP rightly directed exclusion of Persistent Systems and Solutions Ltd from the list of comparables. DRP has also given a finding that assessee was rendering contract software development services to its principal abroad and such services were provided by it through projects and assignments contracted to it by their principals abroad. Thus, according to us, DRP was justified in directing exclusion of persistent Systems and Solutions Ltd, considering the functional profile of the assessee as dissimilar from that of Persistent Systems and Solutions Ltd.
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