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2016 (6) TMI 1280 - AT - Income TaxDeduction u/s 10A computation - Held that:- Both sides that these issues are covered in favour of the assessee by the judgment of the Hon'ble Karnataka High Court rendered in the case of M/s. Tata Elxi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT) held that the total turnover is sum total of export turnover and domestic turnover and therefore, if any amount is reduced from the export turnover, the total turnover is also to be reduced by the same amount as a consequence thereof. Under these facts, we find no reason to interfere in the order of the ld. CIT(A) on this issue. Exclusion of comparables - Held that:- Since the present assessee company is only providing software development services to the AE, thus companies functinally dissimlar with that of assessee need to be deselected. After exclusion of 5 companies, arithmetic mean of the remaining 6 companies (comparables) will be only 14.02% as against PLI of the tested party i.e. the assessee company 17.63% and as a result No. TP adjustment is called for after exclusion of these 5 comparables and therefore, we do not go into the claim of the assessee regarding adoption of correct operating profit of two companies i.e. M/s. Sasken Communication and M/s. Larsen & Toubro Ltd., because the same is of academic interest only.
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