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2016 (6) TMI 1271 - AT - Income TaxTPA - comparable selection criteria - Held that:- Tthe assessee company is engaged in rendering services to the AE relating to designing of integrated circuits and the testing of integrated circuits along with customer support. It is also noted by the TPO that the international transactions are mainly for software services apart from re-imbursement of expenses, thus companies functionally dissimilar with that of assessee need to be deselected from final list of comparability. Computing deduction allowable to the assessee u/s 10A - Held that:- As held by the Hon’ble jurisdictional High Court in the case of M/s Tata Elxsi ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT) that total turnover is sum total of domestic turnover and export turnover and therefore, if an amount is excluded from the export turnover, the same gets automatically reduced from the total turnover. Respectfully following this judgment of the Hon’ble jurisdictional High Court, we direct the AO/TPO to reduce this amount which was reduced from the export turnover from the total turnover also for the purpose of computing deduction allowable to the assessee u/s 10A Rectification of mistake - A.O. has neither included any comparable nor excluded any comparable as had been directed by DRP - Held that:- There is no dispute that as per the directions of DRP, some comparables were to be excluded and some were to be included but as per the final assessment order, the A.O. has neither included any comparable nor excluded any comparable as had been directed by DRP and therefore, his order is in violation of sub section 13 of sec.144C. But this is also true that there is wrong observation in this final assessment order that DRP has confirmed the proposed assessment order. Under these facts, we find force in the submissions of the learned DR of the revenue that this is an apparent mistake in the assessment order rectifiable u/s 154 of the I T Act. Thus since the time limit of 4 years prescribed in section 154 has not elapsed, we feel it proper to restore the entire matter in this year to the AO to pass fresh assessment order as per the directions of DRP and thereafter, both sides are at liberty to file appeal before the tribunal if not satisfied with that order.
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