https://www.taxtmi.com/caselaws?id=277091 Transfer pricing comparability in software development services is driven mainly by functional similarity and material economic differences: turnover alone is not decisive unless it materially affects price, cost or profitability, while product development, intangibles, lack of segmental data and other extraordinary features justify exclusion. Employee cost is a relevant filter, diminishing revenue is not a reliable exclusion test, and different year-end data may be excluded where relevant-year comparability is unavailable. Foreign exchange gain from operating transactions is treated as operating income, and Chapter X adjustment is confined to international transactions. For deductions, software engineers may qualify as workmen for section 80JJAA, but section 80A(4) bars a further claim for 10A-unit profits; a slump sale does not by itself destroy section 10A eligibility if statutory conditions continue to be met. en-us Fri, 06 Apr 2018 00:00:00 +0530 Sat, 24 Nov 2018 07:22:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277091 Transfer pricing comparability in software development services is driven mainly by functional similarity and material economic differences: turnover alone is not decisive unless it materially affects price, cost or profitability, while product development, intangibles, lack of segmental data and other extraordinary features justify exclusion. Employee cost is a relevant filter, diminishing revenue is not a reliable exclusion test, and different year-end data may be excluded where relevant-year comparability is unavailable. Foreign exchange gain from operating transactions is treated as operating income, and Chapter X adjustment is confined to international transactions. For deductions, software engineers may qualify as workmen for section 80JJAA, but section 80A(4) bars a further claim for 10A-unit profits; a slump sale does not by itself destroy section 10A eligibility if statutory conditions continue to be met. Case-Laws Income Tax Fri, 06 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277091