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2015 (5) TMI 1138 - AT - Income TaxTPA - selection of comparable criteria - Held that:- The Assessee, is a subsidiary of Cypress Semiconductor Technology Ltd., Cayman Island and is engaged in providing software development and testing services to its associated enterprises (AEs) as a captive service provider in the areas of integrated circuits for memory, interface and data communication applications, thus companies functionally dissimilar with that of assessee need to be added to final list of comparability. Disallowance of deduction claimed u/s.10A of the Act in respect of profits of the Assessee’s Bangalore unit - Held that:- Bangalore unit was not formed by reconstruction of an existing unit or the business of the new unit had not commenced prior to registration with the STPI and therefore deduction u/s.10A of the Act ought not to have been denied on the profits of the Bangalore unit. The deduction claimed by the Assessee is directed to be allowed. The relevant grounds of appeal of the Assessee are allowed. Computation of 10A claim - Taking into consideration the decision rendered by the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT] we are of the view that it would be just and appropriate to direct the Assessing Officer to exclude telecommunication charges and insurance charges incurred be excluded both from export turnover and total turnover, as has been prayed for by the assessee in the alternative. In view of the acceptance of the alternative prayer, we are of the view that no adjudication is required on the ground whether the aforesaid sums are required to be excluded from the export turnover.
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