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2017 (4) TMI 1575 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Vishal Information Technology Ltd. - We deem it appropriate to remand the matter back to the TPO/AO with a direction to decide this issue afresh after giving liberty to the assessee to furnish the record to prove that data entry charges and vendor payments are not related to cost of employees and further prove that its prices were influenced by Indian company. RPT filter - Since the CIT(A) has rejected the comparable companies by applying 0% RPT filter as well as by applying the other criteria which are not acceptable to the revenue, as this Tribunal in series of decisions have held that the tolerance range of RPT in normal circumstances is 15% and in extreme circumstances it can be extended up to 25%. Therefore, we modify the impugned order of the CIT(A) on the issue of related party filter at 15% instead of 0% offered by the CIT(A) We deem it appropriate to direct the learned TPO/AO to consider the turnover filter while rejecting the comparables and also more particularly Wipro BPO Solution Ltd., as it was pointed out by the learned AR that the turnover of the Wipro is 18 times more than that of the assessee. It is of the consistent view that the turnover is within the range of 1/10th of the turnover or up to 10 times, then the comparable is considered to be good comparable. However, if the comparable turnover is more than 10 times, it is held not to be an appropriate or a good comparable. The learned TPO will keep the consistent view of the Tribunal while applying RPT filter of 15% as well as simultaneously consider the turnover filter in the light of the consistent view of the Tribunal as stated herein above. Exclusion of telecommunication charges and travel expenses from the export turnover as well as total turnover while computing the deduction u/s 10A - HELD THAT:- This issue of exclusion of the expenses incurred in foreign exchange from the export turnover as well as from the total turnover is settled by the judgment of Hon’ble Jurisdictional High Court in the case of Tata Elxsi [2011 (8) TMI 782 - KARNATAKA HIGH COURT] Thus, the Hon’ble Karnataka High Court that the total turnover is sum total of export turnover and domestic turnover and, therefore, if an amount is excluded from export turnover, the total turnover is also reduced by the same amount as a consequences of deduction from export turnover. In this view of the matter, we direct the AO to exclude the above expenses from total turnover as well while computing the deduction u/s 10A
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