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2020 (9) TMI 1052 - AT - Income TaxTP Adjustment - Comparable selection - HELD THAT:- Assessee is into software development services and support services for card payment authentication and processing, solutions, and focused on global growth market in prepaid, online and mobile payments to its AE thus companies functionally dissimilar with that of assessee need to be deselected from final list. International transaction - assessee challenges cost allocation by Ld. TPO to determine margin of assessee at 2.95% - HELD THAT:- Assessee filed revised statement of cost allocation, however, the same was not considered by Ld.TPO/DRP, for the reason that, basis of such allocation was not submitted/explained by assessee. In the interest of Justice we deem it appropriate to remand the issue to DRP for verifying the same. Assessee is directed to file all necessary documents to substantiate the basis of such allocation in ascertaining margin of assesse in respect of international transaction undertaken by assessee with its associated enterprise. DRP shall then pass a reasoned order by granting proper opportunity of being heard to assessee in accordance with law. Disallowance of employee contribution to PF belatedly - HELD THAT:- This issue now stands settled in favour of assessee by decision of Hon’ble Karnataka High Court in case of CIT vs Sabari Enterprises [2007 (7) TMI 169 - KARNATAKA HIGH COURT] wherein held that, in view of statutory provisions of section 2(24)(x), section 36(1)(va) and section 43B(b), contributions made by assessee to PF and ESI are allowable deductions, even though made beyond stipulated period, as contemplated under mandatory provisions of section 36(1)(va), read with section 2(24)(x), provided such contributions are paid by assessee on or before due date for furnishing return of income as per section 139(1). This ratio has been upheld by Hon’ble Supreme Court in CIT vs Alom Extrusion Ltd reported in [2009 (11) TMI 27 - SUPREME COURT]. We therefore remand this issue to Ld.AO to verify whether, employee contributions were made by assessee before due date of furnishing of return, as per section 139 (1) of the Act.
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