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2015 (6) TMI 801 - AT - Income TaxTransfer pricing adjustment - adjustment of arm’s length price - selection of comparable - Held that:- Infosys Technologies Ltd.,Wipro Ltd. (Seg.), KALS Information Systems Ltd., (Seg.), Tata Elxsi Ltd., (Seg.), Avani Cimcon Technologies Ltd. and E-Zest Solutions Ltd. are to be excluded from the final list of comparable as functionally dissimilar and different from the software activity of assessee as relying on case of M/s. Invensys Development Centre India (P) Ltd., Hyderabad vs. ACIT, Circle 2(1), Hyderabad [2015 (1) TMI 920 - ITAT HYDERABAD] Exclusion of communication charges from export turnover holding that they are not to be included in the Export turnover - Assessee contested the same stating that data link charges cannot be considered as attributable to export service, however, alternate plea was made that if the same was excluded from the export turnover, the same was also to be excluded from the total turnover while computing deduction under section 10A - Held that:- Following the decision of ITO vs. Saksoft [2009 (3) TMI 243 - ITAT MADRAS-D], DRP should have given a direction to exclude communication charges from the total turnover as well. Since the issue is held in favour of assessee in the case of ITO vs. Sak Soft Limited [supra] and also as approved by Hon’ble Bombay High Court in the case of CIT vs. Gemplus Jewellery Ltd., [2010 (6) TMI 65 - BOMBAY HIGH COURT ], we direct the AO to exclude the communication charges from total turn over as well. - Decided in favour of assessee.
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