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2020 (11) TMI 471 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- Exclusion of companies Non comparable on the basis of turnover filter and functionally dissimilar with that of assessee engaged in developing software solutions for its customers in USA. Deduction u/s 10A - CIT(A) directing deduction of Satellite link charges from Total turnover also while computing deduction - HELD THAT:- HELD THAT:- The Hon'ble Supreme Court has settled this issue in the case of CIT vs. HCL Technologies Ltd [2018 (5) TMI 357 - SUPREME COURT] when the object of the formula is to arrive at the profit from export business, expenses excluded from export turnover have to be excluded from total turnover also. Otherwise, any other interpretation makes the formula unworkable and absurd. Hence, we are satisfied that such deduction shall be allowed from the total turnover in same proportion as well.On the issue of expenses on technical services provided outside, we have to follow the same principle of interpretation as followed in the case of expenses of freight, telecommunication etc., otherwise the formula of calculation would be futile.
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