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2017 (1) TMI 1811 - ITAT BANGALOREDeduction u/s 10A - Computation of deduction - Whether foreign currency expenditure incurred by the appellant should not be reduced from export turnover for the purpose of computing the deduction ? - whether plea of the appellant that if communication expenses attributable to rendering business process outsourcing/IT enabled services are excluded from export turnover, the same should also be reduced from TTO in computing the deduction u/s 10A? - HELD THAT:- We find that this issue is covered in favour of the assessee by the judgment of M/s Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it was held that the total turnover is the sum total of export turnover and domestic turnover and therefore, if an amount is reduced from the export turnover then the total turnover also automatically goes down by the same amount. Hence, we decide this issue in favour of the assessee and the A.O. is directed to recomputed the amount of deduction allowable u/s 10A in the light of this judgment of the Hon’ble Karnataka High Court. TP Adjustment - MAM - claim of consideration of internal TNMM - HELD THAT:- We find force in the submission of the ld. AR of the assessee that this issue should go back to the file of the TPO for fresh decision because this was the claim of the assessee before the authorities below that internal TNMM of the assessee for its substantial transaction with unrelated parties should also be considered to decide the ALP but this aspect of the matter has been brushed aside by the TPO and DRP. Hence, we set aside the order of the AO on TP issue and restore the matter to the file of the AO/TPO for a fresh decision, after examining the claim of the assessee for consideration of internal TNMM. Appeal of the assessee is partly allowed for statistical purposes.
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