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2012 (8) TMI 326 - AT - Income TaxTransfer Pricing - adjustment to ALP - addition - consideration of transactions both with AEs and Non-AEs for the purpose of recommending adjustment - assessee engaged in the development and sale of computer software objected to the comparables chosen - Held that:- It is observed that assessee entered into international transactions with its AEs and also non-AEs and transfer pricing adjustment can be made only with reference to the international transactions with the AEs and not non-AEs. It is quite natural also because there can be no scope for arranging the transactions with non-AEs so as to reduce the due tax in India. On Revenue contention of restoring the matter to the file of TPO for a fresh determination of PLI on ground of non-availability of data it is held that facts indicate that the allocation of total revenues and total cost between AEs and non-AEs, was very much available before the TPO as well as DRP and none of these authorities have adversely commented on such allocation. It, therefore, implies that they accepted these figures as correct. Further, TPO finally chose 33 uncontrolled comparable cases on the basis of their revenues from IT/ITES and the companies in fact are those which appear to be exclusively engaged in rendering IT/ITES. It is manifest that the service fee charged by the assessee from international transactions with its AEs is more than the ALP determined by applying the PLI as found out by the TPO and hence no addition/adjustment is called for. We, therefore, order for the deletion of addition - Decided in favor of assessee
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