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2018 (7) TMI 2150 - AT - Income TaxTP Adjustment - comparable selection - Comparability analysis - Treatment to foreign exchange gain - HELD THAT:- Foreign exchange fluctuation gain earned by assessee is operating income and therefore Ld.TPO/AO is directed to adjust the margin of the assessee by treating foreign exchange gain as operating income of assessee for determining PLI for comparability analysis. Assessee is engaged in providing software development services to its group AE - In TP study report assessee has been categorised as a full-fledged enterprise no real service provider engaged in the business of software development services.thus companies functionally dissimilar with that of assessee need to be deselected. Deduction u/s 10A - Whether income pertaining to un billed revenue is derived from export of software services and the same is eligible for deduction under section 10 A (3)? - HELD THAT:- The agreements entered into by assessee with the parties with whom export have been effectuated, were placed before Ld.AO for his perusal and AO has not disputed the export of goods. In the light of the above and considering the fact that assessee generally has some amount of unbilled revenue for every Assessment Year which is subsequently received, we allow this ground raised by assessee.
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