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2018 (1) TMI 1394 - AT - Income TaxTPA - comparable selection criteria - Held that:- Assessee is a company engaged in the business of providing services in the field of Information Technology and Information Technology enabled engineering services (ITES) etc., thus companies functionally dissimilar with that of assessee need to be deselected from final list. Deduction u/s 10A - Held that:- Although the DRP had directed the Assessing Officer to recalculate the deduction u/s 10A by not reducing insurance expenses from export turnover, the Assessing Officer, according for the assessee has not followed the direction of the DRP. We, therefore, direct the Assessing Officer to adjudicate the issue afresh as per fact and law and in the light of the direction given by the DRP. The grounds raised by the assessee are accordingly allowed for statistical purposes. Depreciation on computer peripherals - at the 15% allowed by the Assessing Officer as against 60% claimed by the assessee - Held that:- The Hon’ble Delhi High Court in the case of CIT vs. BSES Yamuna Powers Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] has held that computer accessories and peripherals such as printers, scanners and server, etc. form an integral part of computer system and hence they are entitled to depreciation at higher rate of 60%. Thus we hold that the assessee is entitled to depreciation at the rate of 60% on computer peripherals. The ground raised by the assessee is allowed. Deduction u/s 10A on the income enhanced on account of disallowances made in the assessment order. It has been held in various decisions that whenever there is enhancement of income by the Assessing Officer on account of disallowance of expenses, the profit goes up and the enhanced profit is entitled to deduction u/s 10A of the I.T. Act. Therefore, the ground raised by the assessee is allowed.
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