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2021 (8) TMI 1095 - AT - Income TaxTP Adjustment - comparable selection - HELD THAT:- E-Zest Solutions Limited - As in the case of GXS India Technology Centre (P.) Ltd. [2015 (8) TMI 227 - ITAT BANGALORE], since assessee in our case is into software development services, same cannot be functional compared with E-Zest Solutions Limited, which is into KPO services. Therefore, we direct the AO / TPO to exclude E-Zest Solutions Limited from the final list of comparables. It is ordered accordingly. Softsol India Limited - On identical facts, the Tribunal in the case of GXS India Technology Centre (P.) Ltd. (supra) had held that Softsol India Limited is to be excluded from the comparables list of companies on account of that it was having related party transactions in excess of 15%. In view of the above order of the Tribunal and also for the fact that assessment year being the same (A.Y.2008-2009), we direct the AO / TPO to exclude Softsol India Limited from the final list of comparable companies. Benefit of deduction u/s 10A in respect of additions agreed for the MAP proceedings - HELD THAT:- On identical facts, the Tribunal in assessee’s own case [2020 (6) TMI 699 - ITAT BANGALORE] had held that additions agreed under MAP proceedings was entitled to the benefit of deduction u/s 10A. Deduction u/s 10A of the I.T.Act by excluding the expenditure deducted from the export turnover also to be reduced from the total turnover - HELD THAT:- We are of the view that the above issue raised by the Revenue is no more res integra. As in the case of CIT v. HCL Technologies Ltd. [2018 (5) TMI 357 - SUPREME COURT] had held that when expenditure are reduced from the export turnover, the same need to be reduced also from the total turnover while calculating deduction u/s 10A of the I.T.Act. In view of the dictum laid down by the Hon’ble Apex Court, ground No.1 raised in Revenue’s appeal is rejected.
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