Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2645 - AT - Income TaxTPA - selection of comparable - Held that:- Assessee being a software development services provider thus companies dissimilar with that of assessee need to be deselected from final list of comparable. Risk adjustment - Held that:- We of the opinion that the risk borne by the comparables as well as the assesee were of the very same nature and therefore the effect of the risk on the profitability already stood discounted in the operational results of the comparables. We therefore find no merit in this ground raised by the assessee. In the result, assessee’s ground relating to risk adjustment is dismissed. Deduction u/s.10A computation - Held that:- Travel expenditure and telecommunication expenditure incurred in foreign currency ought not have been excluded from export turnover. Alternately it says that if they were excluded from export turnover, similar exclusion was to be done in the total turnover also for working out deduction u/s.10A of the Act. In so far as the contention of the assessee that foreign currency expenditure should not be excluded from the export turnover, we are unable to appreciate in view of the definition of ‘export turnover’ given in Explanation 2 (iv) to Section 10A does not warrant such an interpretation. However in respect of parity between the export turnover and total turnover, in view of the decision of the Hon’ble jurisdictional High Court in the case of CIT v. Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT], assessee has to succeed. We direct the AO / TPO to exclude what has been excluded from the export turnover from the total turnover also while computing deduction u/s.10A of the Act Direct that assessee be given deduction u/s.10A of the Act without setting off brought forward loss and unabsorbed depreciation of non-eligible units.
|