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2023 (7) TMI 1143 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Persistent Systems Limited cannot be accepted as comparable. Accordingly, the AO/TPO are directed to exclude the Persistent Systems Limited from the final set of comparables and re-compute ALP as well as transfer pricing adjustment, if any, accordingly. Wipro Technologies Services Limited/WTSL cannot be selected as a comparable on account of substantial related party transactions. I-Gate Global Solutions Limited be excluded from the list of comparable has been sought by the Appellant, inter alia, for the reason that I-Gate is engaged in IT Services as well as IT enables Services which have been treated as separate international transactions by the TPO. Since no segmental information is available for the financial year relevant to Assessment Year 2011-12, I-Gate cannot be adopted as a comparable. Infosys Technologies Limited (now known as Infosys Limited) - We hold that ITL cannot be accepted as functionally comparable with the Appellant in the present case. Accordingly, the Assessing Officer/TPO are directed to exclude Infosys Technology Ltd. from the final set of comparables and re-compute ALP as well as transfer pricing adjustment, if any, accordingly. Zylog Systems Limited - Absence of any separate segmental result of software development services available in public domain, we reject the company as comparable on functional dissimilarity at entity level. Disallowance of deduction claimed u/s 10A/10AA in respect of receipts under Intellectual Property Services Agreement between Accenture Global Services, GmBH and the Appellant - HELD THAT:- We direct the AO to compute deduction under Section 10A/10AA of the Act taking into account the receipt pertaining to IPSA as per the directions issued by the Tribunal in the aforesaid decisions as well as the directions issued by the DRP for the Assessment Year 2013-14 and 2014-15. Accordingly, Ground raised by the Appellant is allowed. Claim for deduction for education cess - HELD THAT:- In view of retrospective amendment in Section 40(a)(ii) of the Act and the judgment of Joint Commissioner of Income Tax Vs. Chambal Fertilisers & Chemicals Ltd. [2022 (12) TMI 1098 - SC ORDER] we are not inclined to accept the submissions of the Appellant. Accordingly, Ground raised by the Appellant is dismissed.
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