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2020 (9) TMI 1257 - ITAT DELHITP Adjustment - comparable selection - HELD THAT:- There cannot be any dispute with respect to that for the comparability analysis the functions performed, assets employed and risks assumed of the assessee is required to be compared strictly with each of the comparable companies. Unless they are found to be distinct, they cannot be excluded merely because they have been excluded in some other assessee’s case. However in the present case, the issue is when a particular comparable company is excluded from the comparability analysis in assessee’s own case for earlier years, for whatever reasons, even if same was excluded following some judicial precedent of other assesses, judicial discipline requires that we follow - We direct the learned transfer pricing officer/assessing officer to exclude (1) E Clrex Services Ltd, ( 2 ) Infosys BPO Limited and ( 3) TCS E Serve Limited and then work out the margins of the comparable. Accordingly, ground number 2 – 3 of the appeal of the assessee is allowed. Disallowance u/s 14A - HELD THAT:- When the assessee has not earned any exempt income during the year, there cannot be any reason to disallow any expenditure during the year. This principle has been laid down by many judicial authorities. In view of this we direct the learned assessing officer to delete the disallowance u/s 14 A of the act as assessee has not earned any exempt income. Thus ground number 4 of the appeal is allowed. Non granting the full credit of tax deduction at source claimed by the appellant in its return of income - HELD THAT:- AO is directed to verify the credit claim of the assessee and if found in order may allow the credit claimed by the assessee for tax deduction at source. Accordingly, ground number 6 of the appeal is allowed.
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