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2015 (11) TMI 1793 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Assessee is a company incorporated under the provisions of the Companies Act, 1956 engaged in the business of software development, consultancy services and IT enabled services thus companies functionally dissimilar with that of assessee need to be deselected from final list. Compute profit u/s 10A before setting off of the losses of another unit - HELD THAT:- CIT(A) to compute profit u/s 10A of the Act, before setting off of the losses of another unit. The CITA), following the jurisdictional High Court decision in the case of CIT Vs M/s Yokogawa India Ltd. [ 2011 (8) TMI 845 - Karnataka High Court] As per section 72(2) unabsorbed business loss is to be fist set of and thereafter unabsorbed depreciation treated as current year’s depreciation under section 32(2) is to be set off. As deduction under section 10A has to be excluded from the total income of the assessee the question of unabsorbed business loss being set off against such profit and gains of the undertaking would not arise. In that view of the matter, the approach of the assessing authority was quite contrary to the aforesaid statutory provisions and the Appellate granting the benefit of section 10A to the assessee. Hence, the main substantial question of law is answered in favour of the assesses
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