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2015 (9) TMI 954 - AT - Income TaxTransfer pricing adjustment - Held that:- If the assessee's claim for revised segmental results are found to be acceptable, there is every possibility that pricing of its international transactions would come within +/- 5% of the PLI worked out by the TPO himself. Then the issue regarding exclusion and/or inclusion of comparables may not arise at all. We therefore, set aside the orders of the authorities below and remit the issue back to the file of the AO/TPO for consideration afresh in accordance with law. Right of the assessee to challenge all other aspects of the assessment and conditions are kept open - Decided in favour of assessee for statistical purposes. Selection of comparable - Held that:- Eclerx Services Ltd. company cannot be taken as a comparable both for the reasons that it was having supernormal profit and it is engaged in providing KPO services, which is distinct from the nature of services provided by the assessee. Mold-Tek Technologies Ltd (seg) - In recent decision rendered in the case of Adobe Systems India Pvt. Ltd. (2011 (1) TMI 933 - ITAT NEW DELHI) exclusion of comparables showing supernormal profits as compared to other comparable is fully justified. We, therefore set aside the impugned order of the ld. CIT(A) on this issue and restore the matter to the file of the A.O. with a direction to decide the same afresh after taking into consideration the submissions made by the assessee before the learned CIT(A) Vishal Information Technologies Ltd - their annual accounts that the company outsourced a considerable portion of their business. As the assessee carried out entire operations by itself, in our considered opinion, rightly excluded. Re computation of the claim of deduction u/s. 10A - Held that:- Since as already directed that reallocation of HO expenditure in between various segments are to be done before comparing the results of the assessee with that of the comparables, while making the TP study, we prefer to keep this issue open. AO can consider the claim of the assessee that deduction u/s. 10A of the Act, has to be given to it after the TP adjustments, if any required for the ITES. - Additional ground allowed for statistical purposes.
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