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TMI Blog2017 (1) TMI 1811X X X X Extracts X X X X X X X X Extracts X X X X ..... "Based on the facts and circumstances of the case and in law, Xchanging Solutions Ltd. (formerly known as Cambridge Solutions Ltd. (appellant) respectfully craves to leave to prefer an appeal u/s 253 of the I T Act, 1961(Act) against the order passed by the DCIT, in pursuance of the directions issued by DRP, Bangalore dated 29-09- 2011 on the following grounds; General 1. The order of the ld. AO and directions of the Hon'ble DRP are based on incorrect interpretation of law and therefore, are bad in law. 2. On the facts and circumstances of the case and in law and based on directions of DRP, the ld. AO erred in assessing the total income at Rs.14,774,120 as against returned income of NIL computed by the appellant. Corporate Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff of b/f business loss of Rs.5,959,754 without giving effect to the quantum of b/f loss available for set off and considering the total income not so set off as taxable. 9. Without prejudice to the rectification filed, the ld. AO has erred in not granting credit in respect of TDS of Rs.2,984,285 claimed by the appellant. Transfer Pricing grounds 10. The ld. AO/TPO have erred in law and on facts, by ignoring/disregarding the economic analysis undertaken by the appellant (using internal TNMM/CPM) in accordance with the provisions of the Act read with Rules, conducting a fresh economic analysis for the determination of the ALP in connection with the impugned international transaction (using external TNMM) and holding that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in law, and on facts, by including certain companies based on unreasonable comparability criteria. 19. The ld. AO/TPO have erred in law and on facts, by not taking into consideration, foreign exchange fluctuation gain/loss in computing the operating margin of the appellant as well as the comparable companies. 20. The ld. AO/TPO erred, in law and on facts, while computing the working capital adjustment. 21. The ld. AO/TPO have erred in law and on facts, by not making suitable adjustments to account for differences in the risk profile of the appellant (in the projects where it acts as a contract service provider) vis-à-vis the comparables. 22. The ld.AO/TPO have erred in law and facts, in computing the ALP without giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the President of the Appellate Tribunal for the purpose of Rule 5A of the IT Rules, 1963, then, at the option of appellant, in Hindi and should set forth, concisely and under distinct heads the grounds of appeal without any argument or narrative and such grounds should be numbered consecutively. 4. The number and year of appeal will be filed in the office of the Appellate Tribunal. 5. If the space provides is found insufficient, separate enclosures may be used for the purpose". It was submitted by the ld.AR of the assessee that ground 1 to 2 are general and ground no.3,5,7 & 9 are not pressed. Accordingly, these grounds are rejected. 3. Regarding the Corporate tax issue involved in ground no.4 & 6, he submitted that this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment of the Hon'ble Karnataka High Court rendered in the case of M/s Tata Elxsi Ltd. (Supra) wherein it was held that the total turnover is the sum total of export turnover and domestic turnover and therefore, if an amount is reduced from the export turnover then the total turnover also automatically goes down by the same amount. Hence, by respectfully following this judgment of the Hon'ble Karnataka High Court, we decide this issue in favour of the assessee and the A.O. is directed to recomputed the amount of deduction allowable u/s 10A in the light of this judgment of the Hon'ble Karnataka High Court. 7. Regarding the TP issue, we find force in the submission of the ld. AR of the assessee that this issue should go back to the file of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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