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2016 (3) TMI 1270 - AT - Income TaxDenial of deduction u/s. 10A - non-production of export invoices - Held that:- AO has wrongly disallowed the claim. Initially, the claim was disallowed on non-production of FIRC’s. In the post DRP proceedings, the disallowance was made on non-production of invoices. We are not convinced with reasons stated by the AO. In fact, his order states that assessee has shown invoice value to the extent of ₹ 17,11,75,098/- as against ₹ 17,33,92,390/- and balance was reconciled. Be that as it may, now assessee undertakes to produce the copies of invoices to the AO. Therefore, without going into the merits of action of AO, we direct the AO to examine the same and allow the claim. The issue of claim of 10A is accordingly set aside to the AO for that limited purpose. Claim of deduction u/s. 10A. - AO excluded leased line charges and travelling expenses from the export turnover but has not reduced from the total turnover - Held that:- This issue was already decided by the jurisdictional Hon'ble High Court in the case of Tata Elxsi Ltd., Vs. CIT (2011 (8) TMI 782 - KARNATAKA HIGH COURT) wherein it was held that whatever expenses reduced from export turnover should also be reduced from total turnover, while computing the deduction u/s. 10A of the Act. We direct the AO accordingly. TPA - comparable selection criteria - Held that:- Assessee has rendered software development services thus companies functionally dissimilar with that of assessee need to be deselected from final list of comparable.
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