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2020 (9) TMI 68 - AT - Income TaxComputation of deduction u/s 10AA - computation mechanism provided under the APA agreement - ALP adjustment made by the assessee pursuant to APA as a Voluntary Transfer Pricing adjustment - HELD THAT:- The ALP adjustment made by the assessee pursuant to APA is a Voluntary Transfer Pricing adjustment and is therefore eligible for deduction under section 10AA of the Act, as section 10AA(1) read with 10AA(7) of the Act uses the expression Profits and gains derived from the export of the unit which is wide in nature and covers the increased profits of the Company after making the ALP adjustment pursuant to APA. Whether ALP adjustment pursuant to APA falls within the ambit of proviso to Section 92C(4) of the Act ? - HELD THAT:- ITAT Bangalore in case of IBM India Pvt Ltd [2020 (8) TMI 196 - ITAT BANGALORE], following the decision of Pune Tribunal in case of DAR AL Handasah Consultants (Shair & partners) India Pvt Ltd [2019 (12) TMI 153 - ITAT PUNE] has held that deduction under section 10AA of the Act has to be allowed on incremental income arisen pursuant to APA as per modified return filed under section 92CD of the Act as same is not hit by proviso to section 92C(4) We hold that the ALP adjustment made pursuant to APA by the assessee in respect of Gurqaon SEZ unit results in increase in profits of the business of the undertaking/unit, the increased profits of the assessee being eligible for deduction under section 10AA of the Act given the wide nature of the expression used in section 10AA i.e. 'Profits of the business of the undertaking/unit' and that the proviso to section 92C(4) is not a bar to allowing such a claim. - Decided against revenue.
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