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2018 (12) TMI 198 - AT - Income TaxTPA - exclusion of certain companies from the final list of comparables - functional criteria - Held that:- The assessee is engaged in the business of market research and data processing, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Rate of depreciation to be allowed on software license fee - Capitalization of license fees - Held that:- We uphold the direction of the DRP to treat the amount as 'capital in nature' to allow the depreciation. However, the rate of depreciation is to be determined at 60%. With the above directions, the ground is considered partly allowed TDS receivables as advance written off/bad debt - Held that:- AO observed that though the assessee has claimed it as advances written off, it has not given full details and therefore, he disallowed the same and brought to tax. Even before us also, the assessee has not filed any evidence. The learned Counsel for the assessee requested that this issue may be remanded to the TPO to give another opportunity of filing all the evidence. But since the assessee has not been able to produce any evidence before us, we do not see any reason to remand the issue at this juncture without any evidence. In view of the same, this ground of appeal is rejected. Exemption u/s 10A on enhanced income - Held that:- Issue is covered in favour of the assessee by various decisions, particularly in the case of CIT vs. Gem Plus Jewellery India Ltd [2010 (6) TMI 65 - BOMBAY HIGH COURT] wherein it was held that the exemption u/s 10A should be granted even on the income which is enhanced due to the disallowance of certain expenditure. Respectfully following the same, we direct the AO to allow the deduction u/s 10A of the Act to the assessee on enhanced income as well.
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