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2015 (5) TMI 780 - AT - Income TaxTransfer pricing adjustment - wrong selection of comparable - Held that:- Since we have excluded Excel Infoways Ltd from the final list of comparables as having low employees ratio to sales, the average of the comparables of the remaining companies as per TPO being at 20.97% as compared to that of the assessee at 17.11% is within ±5% range as per the provisions of law. The international transactions made by the assessee is directed to be treated as at ALP. As we have decided this issue only by excluding Excel Infoways Ltd from the final list of comparables, we do not find it necessary to decide the other issues in this regard raised by the assessee - Decided in favour of assessee. Non-grant of exemption u/s 10(35) - Held that:- DRP has given clear direction that a deduction of ₹ 5,98,957/- must be allowed while determining the taxable income of the assessee. We find that the AO has not followed the direction given by the DRP. We direct the AO to follow the direction of the DRP. - Decided in favour of assessee. Disallowance u/s 14A r.w. Rule 8D - Held that:- A perusal of the assessment order shows that the AO grossly erred by wrongly taking the quantity of units purchased and sold as the value of mutual funds. We find that there is no opening and closing balance. What the AO has taken is the quantity of units purchased and units sold for the purpose of making disallowance u/s 14A of the Act. Since, the disallowance is based on factual errors, we direct the AO to delete the addition of ₹ 19,326/- - Decided in favour of assessee. Levy of interest u/s 234B and 234C - Held that:- The levy of interest is mandatory though consequential. We accordingly direct the AO to charge interest u/s 243C and 234B of the Act. - Decided against assessee.
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