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2017 (5) TMI 1805 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- M/s TCS E-serve Limited had wrongly been included by the TPO as a comparable, and thus direct the AO/TPO to exclude the same from the final list of comparables. We direct the AO/TPO to exclude the aforesaid companies, viz TCS Eserve Limited(supra) and M/s Wipro Technology Services Ltd.(supra) from the final list of comparables. We find that the exclusion of the aforesaid two companies from the final list of comparables, as submitted by the Ld. A.R on the basis of a chart filed before us, marked as ‘Permutation of Margin of Comparable Companies’, therein brings the ALP of the assessee from 25.28% to 18.68%, and as such within the range of +/-5% adjustment, as a result whereof no TP adjustment would be called for in the hands of the assessee. The Grounds of appeal No. 1 to 4 are thus allowed in terms of our aforesaid observations. Deduction u/s 10A - profit of the assessee as modified by the disallowance made on account of foreign exchange loss - HELD THAT:- DRP had directed that the Foreign Exchange Gain in the hands of the assessee for the year under consideration would form part of the profits eligible for computation of deduction u/s 10A. We are persuaded to be in agreement with the observations of the DRP, whom we find going by the principle laid down by the Hon’ble jurisdictional High Court Gem Plus Jewellery [2010 (6) TMI 65 - BOMBAY HIGH COURT] had directed the A.O to include the Foreign Exchange Gain as part of the profit eligible for computation of deduction u/s 10A - We thus finding no infirmity in the aforesaid observations of the DRP in respect of the issue under consideration, therefore uphold the same. The Grounds of appeal raised by the revenue before us are thus dismissed.
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