Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1683 - AT - Income TaxComputation of deduction u/s 10A - reduce expenditure incurred in foreign currency in the form of insurance, freight and telecommunication to be reduced from total turnover as well as export turnover - HELD THAT:- The direction of the CIT(A) is in consonance with the law laid down by the Hon'ble jurisdictional High Court in the case of CIT vs. Tata Elxsi [2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it has been held that if the expenditure is to be excluded from the export turnover then the same has to be excluded from the total turnover as well. This ground of appeal is accordingly dismissed. TP Adjustment - Comparable selection - exclude comparables on the ground that turnover of those companies fall outside the range of Rs. 1 to Rs. 200 crores or they earn abnormal profits or incurred abnormal losses - HELD THAT:- As regards turnover filter, learned counsel for the assessee not pressed during the course of hearing. As regards filter of abnormal profits or losses as held in the case of DCIT v. Quark Systems P. Ltd. [2009 (10) TMI 591 - ITAT, CHANDIGARH] no comparable can be excluded on the ground that the company is earning abnormal profits or incurring abnormal losses. Accordingly, ground are allowed. We uphold the action of the TPO/AO to include in the list of comparables the comparables Bodhtree Consulting Ltd. and Geometric Software Solutions. Exclusion of companies as functionally dissimilar with that of assessee.
|