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2021 (9) TMI 440 - AT - Income TaxTP Adjustment - rate determined under MAP resolution for USA based transactions to other non-USA based transactions transfer pricing assessment made in respect of Software development services ( "Information Technology Services") - rate determined under MAP resolution for USA based transactions to other non-USA based transactions - HELD THAT:- AO/TPO to adopt the net margin rate of 16.99% for non-USA based transactions also and compute the Transfer pricing adjustment for SWD segment (IT services segment) accordingly. Non-granting of proper credit for TDS and advance tax - HELD THAT:- AO has given credit for the amounts wherein the PAN number of the present assessee is shown. It is the case of the assessee that the payments made under the name and PAN number of merged entities also should be given credit, when the corresponding income is assessed in the hands of the present assessee. We find merit in the said contentions. However, this issue requires factual verification. Accordingly we restore this issue to the file of the AO for examining the claim of the assessee in accordance with law. Rejection of set off of brought forward business loss claimed in the return - HELD THAT:- We notice that the AO has not assigned any reason for not allowing set off of brought forward business loss. Accordingly, we restore this issue to the file of the AO for examining the claim of the assessee in accordance with law. Transfer pricing adjustment made in respect of ITES segment - HELD THAT:- Major source of income for this company is from Engineering Design Services which is an activity falling under the category of "Knowledge Process Outsourcing (KPO)" while the activities carried on by the assessee falls under the category of "Business process outsourcing (BPO)" - DRP has followed the decision rendered by the coordinate bench in the case of Symphony Marketing Solutions India Pvt. Ltd. [2014 (2) TMI 83 - ITAT BANGALORE] - Hence, we do not find any reason to interfere with the decision of Ld. DRP on this comparable company. Computation of deduction u/s. 10A - HELD THAT:- A.O. to exclude certain expenditure both from export turnover and total turnover while computing deduction u/s. 10A of the Act. This issue is now settled by Hon'ble Supreme Court in the case of CIT Vs. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT]and this decision support the view taken by the Ld. DRP. Accordingly, we uphold the decision of DRP on this issue.
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