2015 (10) TMI 2180

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..... learned CIT(A) erred in directing the AO to compute deduction u/s 10A without setting off of losses pertaining to one unit against the profit of another by placing reliance on the decision of Hon'ble High Court of Karnataka in the case of M/s Yokogawa India Ltd., but without appreciating the fact that as per amended provisions of Section 10A, deduction u/s 10A has to be allowed from the total income of the assessee, and as per Section 2(45) of the IT Act, the total income should be computed from various sources after set off of losses from one source against income from other sources under the same head of income in terms of Section 70(1). 3. On the facts and in the circumstances of the case the learned CIT(A) erred in placing relianc .....

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..... in the public domain. 6. On the facts and in the circumstances of the case the learned CIT(A) erred in directing the AO to consider M/s. Dynacons Solutions & Systems Ltd as comparable in the absence of any data available for the software services segment of the company in public domain. 05. On a reading of these grounds it is clear that grievance raised by the Revenue is on the direction of CIT (A) to consider M/s. Net Axis Software Services Ltd and M/s. Dynacons Solutions & Systems Ltd, as good comparables, for analysing the value of international transactions of the assessee, with its AE. Relevant directions of CIT (A), as it appear at para 42 is reproduced hereunder : 42. I have carefully considered the appellant's submissions. .....

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..... comparative analysis for the reasons mentioned against their names below: 1. R. S. Software India Ltd., - perusal of the financial data indicates that This company has incurred losses for the Year 2001-02 to 2003-04 2. Net Access Software Services Ltd.,-No financial data of this company is Available in the data bases. 3. Dynacons Systems & Sales Ltd., - No financial data of this company is available in the data bases. In other words if financial data for relevant previous years were available in public domain, it could be considered as good comparables. CIT(A)'s direction was only to verify this aspect. He did not limit the power of the AO / TPO to consider their comparability on their yardsticks. We are of the opinion that order o .....

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