TaxTMI 
TaxTMI 
2017 (3) TMI 1322
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....ication charges, insurance & professional charges both from the Export turnover as well as total turnover, though such an adjustment to the total turnover is not contemplated in the provisions laid down below sec. 10A. (ii) The CIT(A) while relying on the decision of the Hon'ble ITAT in the case of intoto Software India Pvt Ltd V ACIT (2013 35 Taxman 421 (Hyd), erred in allowing the comparable cases based on that decision. iii) The CIT(A) erred in rejecting the comparables adopted by the TPO which were not at all discussed by the ITAT in its decision in the case of Intoto software India P Ltd Vs ACIT(2013 35 Taxman 421 (Hyd). v) The CIT(A) erred in appreciating the fact that in the case of (i) E-Zes Solutions Ltd (ii) Igate Global....
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....the assessee is accepted for the year under consideration. Further, for computation of deduction u/s 10A of the Act, the CIT(A) relied on the special bench decision in the case of Sak Soft Ltd. 30 SOT 55 (Chennai) (SB) as well as in the case of CIT Vs. Tata Elxsi Ltd., [2012] 349 ITR 98 (Kar.) wherein it was held that what was excluded from export turnover was to be excluded from the total turnover as well. Following the said decisions, the CIT(A) directed the AO to exclude the relevant expenses on freight, telecommunication charges and insurance charges from export turnover as well as total turnover for the purpose of computation of deduction u/s 10A of the Act. 5. Considered the rival submissions and perused the material facts on record.....
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....ence on the determination of the transfer price. No such material has been brought on record by the assessee, hence, the use by the TPO of current year data alone is therefore upheld. 7.1 The TPO had selected the following additional comparables: S.No. Company Name OP/TC without adjustment 1. Accel Transmatic Ltd., (Seg.) 21.11% 2. Avani Cimcon Technologies Ltd., 52.59% 3. Celestial Labs Ltd. 58.35% 4. Datamatics Ltd. 1.38% 5. E-Zest Solutions Ltd. 36.12% 6. Flextronics Software Systems Ltd. (Seg.) 25.31% 7. Geomatric Ltd. (seg.) 10.71% 8. Helios & Matheson Information 36.63% 9. Gate Global Solutions Ltd. 7.49% 10. Infosys Technologies Ltd. 40.30% 11. Ishir Infotech Ltd. 30.12% 12. KALS Informati....
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....bles. The decision of the ITAT in this case was also followed in the other three decisions cited by the assessee. Respectfully following the decisions of the ITAT, the CIT(A) set aside the selection of the additional 24 companies by the TPO as comparables and directed the Assessing Officer to adopt the two companies, Mindtree Consulting Ltd and S.I.P. Technologies & Exports Ltd. as the comparables for the purpose of the TP analysis. 8. Aggrieved with the above order, the Revenue is in appeal before us. 9. The ld. DR submitted that the CIT(A) has relied on the decision in the case of Intoto Software India Pvt. Ltd., in which the ITAT, Hyderabad has not adjudicated 8 companies, which are given in Ground No.5 of grounds of appeal. The assess....