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2017 (11) TMI 1131 - AT - Income TaxTPA - comparable selection - Held that:- As apparent from the impugned order of the DRP that the DRP has adjudicated only selective points from the objections raised by the assessee instead of going into all aspects of functional comparability. The learned Authorised Representative of the assessee has relied upon various decisions on the issue of functional dissimilarity of these companies in both segments and therefore we find that the issue of comparability in respect of all these companies where the assessee raised objections of functional dissimilarity require a proper verification and examination. Accordingly, we set aside the entire TP issue in both segments i.e. software development services as well as ITES to the record of the DRP for adjudication of the same afresh by a speaking and reasoned order on all the aspects of functional comparability as raised by the assessee. Needless to say the assessee be afforded an opportunity of hearing and also to support its objections with precedent. Deduction under section 10A computation - Held that:- We find that the issue of expenditure incurred towards travel expenses in foreign currency is reduced from export turnover an equal amount should also be reduced from total turnover while computing the deduction under section 10A of the Act, is covered in favour of the assessee by the decision of the Hon’ble Karnataka High Court in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT].
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