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2015 (10) TMI 945 - AT - Income TaxTransfer pricing adjustment - selection of comparable - Held that:- Exclude M/s. Accel Transmatics Ltd. (Seg) and M/s. KALS Infosystems Ltd. from the set of comparables from companies in the software development services segment of the assessee. Following the decision of the ITAT, Hyderabad Bench in the case of CES Pvt. Ltd. [2014 (4) TMI 930 - ITAT HYDERABAD] for Assessment Year 2006-07, we hold and direct that this company i.e. Infosys Technologies Ltd.,Megasoft Ltd., Tata Elxsi Ltd is to be excluded from the set of comparable companies for the software development services segment of the assessee. Maple e-Solutions Ltd., Datamatics Financial Services Ltd., Vishal Information Technologies Ltd., Asit C Mehta Financial Services Ltd., Goldstone Infratech Ltd. companies cannot be considered as a comparable for the purpose of determining the ALP in this case Apex Knowledge Solutions Pvt. Ltd.is not functionally comparable to ITES provider as it provides services such as e-publishing knowledge based services, etc. Spanco Telesystems & Solutions Ltd. and Allsec Technologies Ltd. - these companies are not to be selected on various reasons, we uphold the objections of Assessee and direct the T PO/AO to work out the arithmetic mean of PLI on the balance of companies. Grounds raised by Assessee on this issue are allowed.” 16.3.2 Following the aforesaid decision of the ITAT, Hyderabad Bench in the case of CES Pvt. Ltd. for Assessment Year 2006-07 (supra), for the factual reasons cited therein and also brought before us, we hold and direct that these two companies namely, Spanco and Allsec Technologies Ltd. are to be excluded from the set of comparable companies for the ITES segment of the assessee. Genisys International Corp. Ltd. company did not come to be selected in the search process of either the TPO or the assessee. That being the case, we find that the assessee has not brought on record any factual evidence to establish its claim that this company satisfies all the conditions and filters for comparability. In this view of the matter, the contentions of the assessee for inclusion of this company as a comparable are not acceptable and we, therefore, dismiss this ground raised by the assessee. Computation of deduction u/s. 10A - Held that:- Taking into consideration the decision rendered by the Hon'ble High Court of Karnataka in the case of Tata Elxsi Ltd. (2011 (8) TMI 782 - KARNATAKA HIGH COURT) we are of the view that it would be just and appropriate to direct the Assessing Officer that data communication charges and lease line charges incurred in foreign currency are to be excluded from both export turnover as well as total turnover while computing the deduction under Section 10A of the Act, as has been prayed by the assessee in its alternate plea. Charging of interest under Sections 234B, 234C and 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 ) and we, therefore, uphold the action of the Assessing Officer in charging the said interest. The Assessing Officer is, however, directed to recompute the interest chargeable u/s. 234B, 234C and 234D of the Act, if any, while giving effect to this order. - Decided partly in favour of assessee.
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