AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1607
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed. 1. The Learned CIT(A) ;has erred on facts and circumstances of the case and in law in deleting the addition of Rs. 7,76,09,600/- by ignoring the computation of margins (PLI)- ITES adopted by TPO vide order dated 25.10.2010. The Ld. CIT(A) has further eared in believing the version of the assessee and holding the international transaction to be at arm's length as claimed in the return of Income. 2. The Learned CIT(A) has erred on the facts and circumstances of the case and in law by holding that the AO should allow deduction u/s 10A first and only after that the carry forward of losses should be set off from the balance income. 3. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....parables did not pass through quantitative filters and functions were different from that of the assessee. Ld.TPO rejected the TP study submitted by the assessee. 3. On an appeal before the Ld.CIT (A), the order of Ld.TPO was upheld in respect of the comparables selected by him, though assessee had objected for inclusion of comparables, except Aditya Birla Minacs worldwide Ltd, Cosmic Global Ltd, Data Metrics Financial Services Ltd, Genesis International Corporation Ltd, I Service India Pvt. limited, Triton Corporation Ltd and Nitany Outsourcing private Ltd. Ld.CIT (A) upheld the comparables selected by Ld.TPO except a company called Mold- Tech Technologies Ltd. It has been observed by Ld.CIT(A) that ld.TPO has accepted TNMM as the most ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee has categorised itself to be providing KPO services and this comparable also deals in engineering design, website designing etc which is also characterised as a KPO service. He has placed his reliance upon the order of this Tribunal in assessee's own case for assessment year 2005-06 for the functional profile of the assessee. He thus submitted that this comparable should be considered. The Ld. DR submitted that in case this company is excluded by applying employee cost filter, then all the other comparables must be subjected to the same filter. 4.4. On the contrary the Ld. Counsel for assessee submitted that this company operates in two segments, being Plastic division and IT division. IT division of this comparable specialises in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is observed from reasoning given by Ld.CIT(A) that, this comparable is having an extraordinary profits in ITES segment, reaching up to 213% for the assessment year under consideration. It is also been recorded by Ld.CIT(A), that this company is not functionally similar with that of assessee as assessee is in back-office research service area, whereas the comparable is dealing in engineering design and detailing services, website the design services etc. It is also been observed that ITES segment of this comparable is having 100% exemption. 5.2. Ld. AR has relied upon various decisions of this Tribunal wherein it has been recorded that this company cannot be compared with any other company, which was engaged in providing low end ITES enab....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of allowable deduction after setting off carry forward losses. On an appeal before Ld. CIT(A), the deduction under section 10A was allowed before the carry forward of the losses that should be set off on the balance income. Against the order of Ld. CIT(A), the revenue is in appeal before us now. 6.2. Ld. DR placed reliance upon the orders passed by the assessing officer as alleged decision of this Tribunal in the case of Honeywell International India Pvt. Ltd., vs. DCIT reported in (2008) 26 SO T503. 6.3. On the contrary Ld.AR submitted that term "total income" used under section 10 A (1) of the Act has to be understood as the total income of STPI unit. He submitted that the relief under this section is in the nature of exemption,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 10 A, in our view, has to be given effect to at this stage of computing the profits and gains of the business. This is anterior to the application of the provisions of section 72 which deals with the carry forward and set off of business losses. A distinction has been made by the legislature while incorporating the provisions of chapter VI-A. Section 80 A (1) stipulates that in computing the total income of an assessee, there shall be allowed from his gross total income in accordance with an subject to the provisions of this chapter, the deduction specified in section 80 C to 80 U. Section 80 P (5) defines for the purposes of chapter VI-A "gross total income" to mean the total income computed in accordance with the provisions of the act, ....