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2018 (12) TMI 1660 - AT - Income TaxClaim of deduction u/s 10B - profit enhanced due to voluntary adjustment to ALP of export of services made to AE as eligible for deduction - HELD THAT:- As decided in I GATE GLOBAL SOLUTIONS LTD. VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX [2007 (11) TMI 444 - ITAT BANGALORE] if income increased, as a result of computation of aim's length price, then such increase is not to be considered for deduction under section 10A. In the instant case, the assessee himself has computed the arm's length prices and has disclosed the income on the basis of arm's length prices. It is not a case, where there is an enhancement of income due to determination of arm's length price. Hence, it is held that assessee was entitled to deduction under section 10A in respect of income declared in the return of income on the basis of computation of arm's length price Also in M/S I. GATE GLOBAL SOLUTIONS LTD [2014 (6) TMI 1007 - KARNATAKA HIGH COURT] held that the error committed by the AO was relying on Section 92(C)(4) to a case where Arm’s Length Price was determined by the assessee, whereas the said provision applies to a case where Arm’s Length Price was determined by the AO, that mistake has been corrected by the tribunal, set aside the order passed by the commissioner as well as the assessing authority - thus we direct the AO to delete the addition made by the AO. Hence, the ground of appeal of the assessee is allowed.
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