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 776 - AT - Income TaxTP Adjustment - selection of comparable - HELD THAT:- Assessee is into providing software development services, thus companies functionally dissimilar with that of assessee need to be deselected from final list. Operating profit estimation - HELD THAT:- Directions of the DRP directing considering foreign exchange fluctuation gain as part of the operating profit of the Assessee is without merit as the law by now is well settled that foreign exchange gain has to be regarded as part of operating profit as held in the case of Electronics for imaging India Pvt.Ltd. Vs. DCIT [2017 (7) TMI 1335 - ITAT BANGALORE]. Deduction u/s.10A on the profits derived from its Software Technology Parks of India (STPI) - 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 the CIT(A) was justified in excluding expenses both from export turnover and total turnover. We are of the view that as of today, law declared by the Hon'ble High Court of Karnataka which is the jurisdictional High Court is binding on us. Moreover, the order of the Hon’ble Karnataka High Court has been upheld by the Hon’ble Supreme Court in the case of CIT v. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT]. The grounds are decided accordingly.
|