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2012 (5) TMI 3 - AT - Income TaxDeduction u/s 10A - Transfer pricing adjustment - It is relating to the reduction of export turnover by communication expenses i.e internet charges attributable to the delivery of computer software outside India and not reducing the same from total turnover also for the purpose of computing deduction u/s 10A of the Act - learned counsel for the assessee submitted that this issue is now covered by the decision in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT ] - wherein it has been held that if certain expenditure is reduced from the export turnover, the same has to be reduced from the total turnover also - Decided in favor of the assessee Regarding Transfer Pricing adjustments - DRP decided the ALP to be @ 119.45% of the operating cost and reduced the same by the price shown in the international transaction and arrived at the short fall of ₹ 3,55,93,801 - TPO did not accept the analysis conducted by the assessee and he conducted a fresh economic analysis and failed to appreciate that such data was not available in the public domain to the assessee at the time of complying with the mandatory TP documentation by the prescribed due date - the basic objection of the assessee is that the TPO has rejected the filters adopted by the assessee and has adopted untenable filters for arriving at the comparables and in his detailed submission before the TPO as well as the Tribunal, the assessee has brought out the various factors that would justify the adoption of comparables by the assessee - The information acquired by the TPO u/s 133(6) was no doubt provided to the assessee. However, the assessee was not allowed to rebut the said information by way of any evidences - In the case of Genesis Integrating System India Pvt. Ltd., Bangalore and this Tribunal vide orders dated 5.8.2011 had answered the various issues raised by the assessee therein and has also issued guidelines for adoption of comparables and has also directed the TPO to allow the assessee to cross examine the comparables whose replies were sought to be used against the assessee if the assessee so desires - Decided in favor of the assessee by way of remand to AO
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