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2020 (10) TMI 188 - AT - Income TaxDeduction u/s 10A - Rejection of assessee claim holding that the undertaking of the assessee has been formed by splitting up or reconstruction of a business already in existence - HELD THAT:- Whether the undertaking of the assessee has been formed by splitting up or reconstruction of existing business was examined by the coordinate bench in the assessee’s own case [2010 (8) TMI 1014 - ITAT BANGALORE] allowed the deduction u/s 10A of the Act to the assessee. Since the Ld. CIT(A) has followed the decision rendered by the coordinate bench on this issue, which has since been upheld by Hon’ble Karnataka High Court M/S. GXS TECHNOLOGY CENTRE PVT. LTD [2018 (11) TMI 1799 - KARNATAKA HIGH COURT] we do not find any infirmity in this order. Accordingly, the appeal of the revenue is dismissed. TP Adjustment - comparable selection - HELD THAT:- The assessee is primarily engaged in providing design and development of software services to its parent company. Thus companies functionally dissimilar and earning abnormally high profits need to be deselected from final list of comparable. Also companies showing RPT% in excess of 15% need to be excluded.
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