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2015 (10) TMI 485 - AT - Income TaxInterest under Section 234D - Held that:- The charging of interest is consequential and mandatory and the Assessing Officer has no discretion in the matter. This proposition has been upheld by the Hon'ble Apex Court in the case of Anjum H Ghaswala [2001 (10) TMI 4 - SUPREME Court]. In this view of the matter, we uphold the action of the Assessing Officer in charging the assessee the said interest. The Assessing Officer is, however, directed to recompute the interest chargeable under Sections 234D of the Act, if any, while giving effect to this order. - Decided against assessee. Transfer pricing adjustment - Exclusion of Comparables Sought for by the assessee - Held that:- Bodhtree Consulting Ltd. (‘Bodhtree’) - We find that a co-ordinate bench of this Tribunal in the case of CISCO Systems (India) Pvt. Ltd. (2014 (11) TMI 849 - ITAT BANGALORE) for Assessment Year 2009-10, following the decisions of the Mumbai Benches of the ITAT in Nethawk Networks Pvt. Ltd. [2013 (11) TMI 967 - ITAT MUMBAI ] and Wills Processing Services (I) Pvt. Ltd. [2014 (4) TMI 814 - ITAT MUMBAI] had omitted this company from the list of comparables to a software development service provider as it was established to be in software product company. Infosys Technologies Ltd. (‘Infosys’) be omitted from the list of comparables to a mere software development service provider since it was found to be functionally dis-similar and different, being a market leader engaged in software products, owned significant IPRs and intangibles, had significant R&D activities, brand attributable profits etc. Following the aforesaid decision of the co-ordinate bench of this Tribunal in the case of CISCO India Pvt. Ltd. (2014 (11) TMI 849 - ITAT BANGALORE) for Assessment Year 2009-10, we hold that ‘Infosys’ cannot be regarded as a comparable to a captive software development service provider, like the assessee in the case on hand, and consequently direct the Assessing Officer / TPO to exclude this company from the list of comparables. Tata Elxsi Ltd. (Seg.) being into software development service segments such as embedded product design services, industrial design and engineering services, systems integrating services, Visual Computing Labs , etc. cannot be regarded as comparable to a pure software development service provider, like is the assessee in the case on hand. Foreign Exchange Gain/Loss - computation of operating revenue - Held that:- It has not been disputed that the foreign exchange gain/loss has arisen as a consequence of the realization of the consideration for rendering software development services and therefore there is no reason for its exclusion from the operating revenues for the purpose of calculating the operating margin of the assessee. Following the decision of Triology E Business Software India Pvt. Ltd. (2013 (1) TMI 672 - ITAT BANGALORE ) and Amba Research India Pvt. Ltd. (2015 (10) TMI 461 - ITAT BANGALORE), we hold that operating revenue should be computed by including the foreign exchange gain/loss. - Decided against revenue.
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