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2017 (4) TMI 1140 - AT - Income TaxTPA - selection of comparable - Held that:- Assessee company is engaged in the pure software development services thus companies different with that of assessee need to be deselected from final list of comparability. Exclude the traveling expenditure from the export turnover for the purpose of calculation of benefit under 10A - Held that:- As regards portion of the expenses incurred in foreign exchange towards insurance, travelling and communication is concerned, in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] held that the same is required to be reduced from export turnover as well as total turnover. Respectfully following the ratio of the decision of the Hon'ble jurisdictional High Court we direct that expenses incurred in foreign exchange towards insurance, travelling and communication are to be reduced both from export turnover as well as total turnover. Therefore, the grounds of appeal filed by the Revenue in this regard is dismissed.
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