9911796707
TMI Blog2017 (11) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee raised objections of functional dissimilarity require a proper verification and examination. Accordingly, we set aside the entire TP issue in both segments i.e. software development services as well as ITES to the record of the DRP for adjudication of the same afresh by a speaking and reasoned order on all the aspects of functional comparability as raised by the assessee. Needless to say the assessee be afforded an opportunity of hearing and also to support its objections with precedent. Deduction under section 10A computation - Held that:- We find that the issue of expenditure incurred towards travel expenses in foreign currency is reduced from export turnover an equal amount should also be reduced from total turnover while co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 1.2.4 Sasken Communications Technologies Limited 1.2.5 Persistent Systems Limited 1.2.6 Larsen and Toubro Infotech 1.2.7 Infosys Limited 1.3 The Ld. AO/TPO erred in selecting following cases as comparables to the Appellant despite there being abnormal fluctuations in margin: 1.3.1 Bodhtree Consulting Limited 2. Comparability Analysis and determination of arm's length price in respect of Information technology enabled services 2.1 The Ld. AO/TPO grossly erred on facts in benchmarking the transactions of the captive information technology enabled services of the Appellant with companies operating as full-fledged entrepreneurs without considering the differences in the functions performed, assets employed and risk undertaken b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ES). The assessee rendered the services to its AE in software development services amounting to ₹ 18,46,18,296 and ITES amounting to ₹ 3,24,84,774. The TPO rejected the TP Analysis of the assessee and determined the Arm's Length Price (ALP) of the international transactions in both the segments by considering the fresh set of comparables. The assessee challenged the action of the TPO before the DRP but could not succeed. 4. Before us, in the software development segment the assessee is seeking exclusion of 7 companies as stated in Ground No.1.2 (supra) and also seeking exclusion of 5 companies from the set of comparables considered by the TPO in ITES segment. 5. We have heard the learned A.R. as well as learned CIT D.R. and ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the entire TP issue in both segments i.e. software development services as well as ITES to the record of the DRP for adjudication of the same afresh by a speaking and reasoned order on all the aspects of functional comparability as raised by the assessee. Needless to say the assessee be afforded an opportunity of hearing and also to support its objections with precedent. 6. Next ground raised by the assessee in this appeal as per Ground No. 2.5 regarding inclusion of R System International Limited. 7. The learned counsel for the assessee stated at Bar that the assessee does not press this ground and the same may be dismissed as not pressed. The learned Departmental Representative has raised no objection if the Ground No. 2.5 is dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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