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2015 (1) TMI 838 - AT - Income TaxTransfer pricing adjustment - addition to the total income by way of adjustment to the Arms’ Length Price - selection of comparables - Held that:- KALS Information Systems Limited and Accel Transmatic, Tata Elxsi Ltd. companies be excluded from the list of 14 comparable arrived at by the TPO as are not functionally comparable with that of the Assessee. Comparable company at Sl.No.6 viz., Flextronics Software Systems Pvt. Ltd. should be taken as a comparable, while comparable at Sl.No.24 viz., Tata Elxsi Ltd. should be rejected as a comparable. Lucid Software Ltd., is engaged in the development of software products whereas the assessee, in the case on hand, is in the business of providing software development services, thus excluded. TPO is directed to compute ALP after excluding the 4 comparable companies dealt with in this order. - Decided in favour of assessee. Entitlement to claim deduction u/s.10A - expenses that are reduced from the export turnover should also be reduced from the total turnover - AO in the draft assessment order dated 10.12.2009 has referred to the fact that the proposal to exclude the aforesaid charges from the export turnover was accepted by the Assessee and therefore the export turnover is being reduced accordingly - Held that:- A perusal of the provisions of Sec.144C of the Act makes it clear that the draft assessment order of the AO will attain finality to the extent that the Assessee does not object to the proposals in the draft assessment order. The DRP is at liberty to consider any issue after due opportunity to the AO and the Assessee. The directions issued by the DRP are binding on the Assessing officer. The above provisions of Sec.144C of the Act which are applicable to the Assessee for the present assessment year, are applicable notwithstanding anything to the contrary under any other provisions of this Act. We are of the view that in the light of the above statutory provisions, the Assessee cannot seek to raise an issue before the Tribunal in respect of which he has not filed any objection before the DRP nor has the DRP considered the issue in exercise of their powers under Sec.144C (8) of the Act. We therefore decline to admit the additional ground for adjudication. - Decided against assessee.
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