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IT(TP)A Nos.480 & 735/Bang/2016 Page 2 of 9 2. For the sake of convenience, we shall take up the revenue appeal in IT(TP)A No.480/Bang/2016 and the facts narrated therein.
Brief facts of the case are that the assessee is engaged in software research and development and filed the Return of income on 24/11/2011 with total income of Rs.10,10,378/- after claiming deduction u/s 10A of the Act. Subsequently, the case was selected for scrutiny under CASS and notice u/s 142(1) of the Act was issued. There was a change in the jurisdiction and the assessee was also issued notice u/s 142(1) of the Act. In compliance, ld. AR appeared from time to time and furnished the details. Since the assessee has international transactions exceeding more than Rs.15 crores, the matter was referred to the Transfer pricing Officer (TP) with the approval of the CIT.
TPO, having considered the financial statement and the transfer pricing study report made adjustment to the ALP to the extent of Rs.4,13,20,373/- and passed the order u/s 92CA of the Act.
Whereas the Assessing Officer (AO) restricted the claim of deduction u/s 10A of the Act and the assessee has filed submissions dated 19/01/2005. AO has re-worked deduction u/s 10A and the draft assessment order was sent to the assessee. The assessee filed objections against draft assessment order before the Dispute Resolution Panel (DRP).
DRP, after considering the objections and submissions of the