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2020 (3) TMI 1442 - AT - Income TaxTransfer Pricing adjustment made in respect of Software Development section - Comparable selection - HELD THAT:- ICRA Techno Analytics Ltd - We notice that the TPO has applied RPT filter of 25%. According to the assessee, the RPT works out to 29.36%, while the TPO has worked out the same at 23.15%. We notice that the Ld DRP has not addressed this issue. TPO has also taken the view that the services rendered by this company are not different, while the contention of the assessee is that this company is engaged in providing different kinds of services which are not akin to that of the assessee. Hence we are of the view that this company requires examination afresh at the end of AO/TPO. Accordingly, we restore this company to the file of AO/TPO for examining it afresh. M/s Spry Resources P Ltd. - We notice that the TPO has not examined the aspects relating to software products. We notice that in the case of CGI information systems & Management Consultants (P) Ltd (supra), M/s Spry Resources India P Ltd has been taken as a comparable company. All these aspects show that there is no clarity on the factual aspects relating to this company. Accordingly, we are of the view that this company also requires fresh examination at the end of AO/TPO. Accordingly we restore this company to the file of the AO/TPO for examining it afresh. TP made in respect of I.T. enabled services - M/s Universal Print Systems Ltd (seg.)(BPO) was restored back to the file of AO/TPO in the case of CGI Information Systems & Management Consultants P Ltd [2018 (4) TMI 1755 - ITAT BANGALORE] M/s Infosys BPO Ltd, TCS E-serve Ltd and M/s Excel Infoway Ltd. be excluded.from the final list of comparable companies for the purpose of arriving at the arithmetic mean of comparable companies for the purpose of comparison with the profit margins. Exclusion of M/s BNR Udyog Ltd from the list of comparable companies. Inclusion of M/s Informed Technologies India Ltd as a comparable company. Disallowance u/s 14A - submission of the assessee that it did not earn any exempt income during the year under consideration - HELD THAT:- We agree with the contentions of Ld A.R, as the claim of the assessee finds support from the decision rendered in the case of Cheminvest Ltd [2015 (9) TMI 238 - DELHI HIGH COURT]. Accordingly we direct the AO to delete this disallowance after satisfying himself that the assessee did not earn any exempt income. Non set-off of the entire brought forward losses, non-grant of MAT credit and short grant of TDS - HELD THAT:- All these issues require verification at the end of the AO. Accordingly we restore all these issues to the file of the assessing officer.
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