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2022 (5) TMI 97 - AT - Income TaxDisallowance u/s 43B - A.R. submitted that the assessee had inadvertently deleted excess amount of leave encashment under Section 43B of the Act in the return of income - HELD THAT:- We have heard the rival submissions. In our opinion the plea of the assessee is justified. Accordingly in the interest of justice, we remit this issue to the file of the AO to consider the aggregate amount of provision for disallowance on leave encashment and AO has to decide the issue after giving opportunity of hearing to the assessee. TP Adjustment - comparable selection - Mindtree Limited and e4e Healthcare Business Services Pvt. Ltd. - HELD THAT:- We direct the AO/TPO to include these 2 comparables in the list of comparables while determining the ALP in segment. Exclusion of ICRA Online Limited from the list of comparables - As relying on Lam Research India (P) Ltd [2021 (9) TMI 1379 - ITAT BANGALORE] we direct the AO/TPO to exclude ICRA Online Ltd. from the list of comparables while determining ALP of the international transactions. Seeking correct computation of operating margin of Mindtree Limited - As D.R. put no objection on this issue. Accordingly, we direct the AO/TPO to consider the correct operating margin of Mindtree Limited after giving opportunity to the assessee. Negative working capital adjustment - HELD THAT:- As decided in e4e Business Solutions India Pvt. Ltd.[2020 (12) TMI 1255 - ITAT BANGALORE] we are of the opinion that the assessee having no working capital risk no negative working capital adjustment is called for. Accordingly, this ground of the assessee is allowed Comparability - Companies functionally dissimilar with that of assessee need to be deselected from final list. Disallowance of deduction under Section 10A - Exclusion of telecommunication expenses both from export sales and total turnover - HELD THAT:- After hearing both the parties we are of the opinion that this issue is settled by the judgment of Hon'ble Supreme Court in the case of CIT vs. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] wherein it is held that the expenditure incurred in foreign currency, towards telecommunication to be excluded both from export turnover and total turnover for the purpose of computation of deduction under Section 10A of the Act. Being so, respectfully following the above judgment of the Hon'ble Supreme Court we dismiss the ground taken by Revenue. Deduction claimed only on interest earned from fixed deposits - HELD THAT:- We find that this issue is covered by the judgment of Hon'ble Karnataka High Court in the case of CIT vs. Hewlett Packard Global Software Ltd.[2017 (11) TMI 205 - KARNATAKA HIGH COURT] in favour of the assessee. As such the interest earned from fixed deposit invested in the export earning of the assessee to be included in the profit of the undertaking while computing the deduction under Section 10A of the Act. Accordingly, this ground of Revenue is dismissed.
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