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2017 (2) TMI 1208 - AT - Income TaxExclusion of telecommunication and foreign travel expenditure from export turnover while computing the eligible deduction u/s 10A - Held that:- Claim of the assessee that telecommunication expenditure and foreign travel expenditure incurred in foreign currency could not be excluded from export turnover cannot be accepted in view of definition of ‘’export turnover’’ given in Explanation 2(iv) to Sec. 10A of the Act. However, viz-a-viz its alternative claim that these expenditure if excluded from export turnover were to be deducted from total turnover also , is acceptable by virtue of judgment of Hon’ble Karnataka High Court in the case of CIT vs. Tata Elxsi Limited[2011 (8) TMI 782 - KARNATAKA HIGH COURT]. Accordingly, we direct exclusion of these expenditure from total turnover also while computing deduction available to the assessee u/s. 10A Deduction available u/s.10A to be given without setting off losses of its other STPI unit - Held that:- Loss incurred by the assessee in its Chennai GFA unit shall not be set off against the profit of its Thiruvanathapuram unit while calculating deduction available to the assessee u/s. 10A of the Act. See Yokogawa India Ltd case [2016 (12) TMI 881 - SUPREME COURT] wherein held loss of a STPI unit could not be set off against the profit of the unit on which deduction u/s.10A of the Act was being claimed. Ground of the assessee stands allowed. Disallowance of set off of its loss in its STPI unit against profits of non STPI unit - Lower authorities had denied the set off treating the STPI unit as a stand alone one - Held that:- The issue in our opinion is covered in favour of the assessee by virtue of the judgment of Hon’ble Bombay High Court in the case of Hindustan Unilever Limited vs. DCIT [2010 (4) TMI 206 - BOMBAY HIGH COURT ] wherein observed that loss sustained by an unit which was eligible for deduction u/s. 10B of the Act could be set off against normal business income. - Decided in favour of assessee Provision made for expenditure disallowed - Held that:- DRP was obliged to give specific findings with regard to the claim of the assessee after going through the records. We are of the opinion that the matter requires a fresh look by the ld. DRP. We therefore set aside the orders of the ld. Assessing Officer and ld. DRP on the issue regarding provision for expenditure and remit it back to the ld. DRP for consideration afresh in accordance with law - Decided in favour of assessee for statistical purpose. Short credit of TDS - Held that:- As per the assessee, TDS was correctly claimed by it in its return of income but still credit is not given. We are of the opinion that ld. Assessing Officer has to verify the fact whether tax has been deducted and claimed by the assessee in its return and decide accordingly.- Decided in favour of assessee for statistical purpose. TPA - selection of comparable - Held that:- As assessee was providing services to its Associated Enterprise in the form of power point presentations which included preparation of various visual aid communication materials such as graphics, charts, exhibits, overhead transparencies and on-screen animated presentations, companies functionally dissimilar with that of assessee need to de-selected from final list of comparable. We allow the grounds seeking exclusion of Infosys BPO Ltd and M/s. Cosmic Global Ltd from the list of comparables and also direct the ld. Assessing Officer to rework the working capital adjustments considering the advances/deposits recoverable in cash or kind or value to be received from the four companies [ Sparsh BPO Services Ltd, Aditya Brila Minacs Worldwide Limited, Sundaram Business Services Limited and Professional Management Consultants Private Limited.]
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