Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 619 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- M/S.Bodhtree Consulting Ltd's profit margin fluctuates significantly on a year-on-year basis, with the result that it cannot be considered as comparable to the Assessee. Apart from the above Bodhtree is also engaged in the provision of software solutions developed in-house, like MIDAS, ShareTree, TeleTree, SecureTree, AppsScale. Assessee is only a captive software development service provider that does not design/develop/sell software products and does not own IPs - we direct exclusion of this company from the list of comparable companies. Computation of deduction u/s 10A - Assessee also made an alternate prayer that expenses that are reduced from the export turnover should also be reduced from the total turnover - HELD THAT:- Taking into consideration the decision rendered by the Hon’ble High Court of Karnataka in the case of CIT v. Tata Elxsi Ltd [2011 (8) TMI 782 - KARNATAKA HIGH COURT] we are of the view that there is no merit in ground raised by the Revenue. It would be just and appropriate to direct the Assessing Officer to exclude the charges both from export turnover and total turnover, as has been prayed for by the assessee in the alternative. In view of the acceptance of the alternative prayer, we are of the view that no adjudication is required on the ground whether the aforesaid sums are required to be excluded from the export turnover. Moreover, the order of the Hon’ble Karnataka High Court has been upheld in HCL TECHNOLOGIES LTD. [2018 (5) TMI 357 - SUPREME COURT]
|