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2022 (7) TMI 1294 - AT - Income TaxTP Adjustment - Comparable selection - CG-VAK Software and Exports Ltd., as a good comparable - HELD THAT:- CG-VAK Software and Exports Ltd., had earned profit in A.Y.2007-08 and 2009-10 and had incurred loss only in A.Y.2008-09. Hence, it has earned profit in two out of three past consecutive financial years. In view of the same and in view of our aforesaid judicial precedents, we hold that CG-VAK Software and Exports Ltd., should be included as a good comparable with that of the assessee company. AR Stated that once this comparable is included in the final list of comparables, it would be well within the +/-5% tolerance band and hence, no transfer pricing adjustment would be required to be made in respect of ITES segment of the assessee. In view of this, inclusion and exclusion of other comparables challenged by the assessee are not adjudicated by this Tribunal and they are left open. Accordingly, ground No. 1&2 raised by the assessee are allowed. Addition on account of un-reconciled receipts with Form 26AS in respect of unit eligible for deduction u/s.10A - HELD THAT:- It is not in dispute that assessee is eligible for deduction u/s.10A of the Act. It is not in dispute that the said un-reconciled receipts from sister concern also pertains to 10A unit of the assessee. The deduction u/s.10A of the Act as directed by the ld. DRP was not granted to the assessee on the ground that the said un-reconciled receipt of Rs.10,33,974/- was not included in Form No.56F issued by the Chartered Accountant for claiming deduction u/s.10A of the Act. We hold that once the receipt whether reconciled with AIR data or not reconciled with AIR data, pertains to 10A Unit, then the whole of the profits of the said undertaking / eligible unit would be eligible for deduction u/s.10A of the Act. This is the mandate provided in the provisions of Section 10A of the Act itself. Accordingly, any addition made which goes to increase the profits of the 10A Unit would only result in consequential increase in grant of deduction u/s.10A - we direct the ld. AO to grant deduction u/s.10A of the Act for unreconciled receipt of Rs.10,33,974/-. Accordingly, the ground No.3 raised by the assessee is allowed.
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