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2020 (8) TMI 758 - AT - Income TaxDeduction u/s 10A - Addition on the interest income and the miscellaneous income on the ground that the above income do not have a direct nexus with the business income of the assessee - HELD THAT:- Respectfully following the decision of the Tribunal in assessee’s own case for the two immediately preceding assessment years, we hold that the assessee is entitled to deduction u/s 10A on the interest income and miscellaneous income. It is to be noted that the appeal filed by the Revenue challenging the allowability of deduction u/s 10A on interest income has not yet been reversed by the Hon’ble High Court although it has admitted the substantial question of law. TP Adjustment - Comparable selection - HELD THAT:- Companies functionally different with that of assessee need to be deselected from final list. Forex income and bank charges as operating in nature - HELD THAT:- AO, following the safe harbor rules, treated the foreign exchange income, bank charges and provision for doubtful debts as non-operating income. The DRP held that foreign exchange fluctuations are indeed part of the revenue/expenses in so far as nexus with operations is established. Similarly, they held the bank charges and provision for doubtful debts as part of the operational revenue/expenses. Respectfully following the decision of the Tribunal in assessee’s own case, we do not find any infirmity in the order of the DRP and, accordingly, the same is upheld. The ground raised by the Revenue on this issue is dismissed.
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