FAIR ISSAC INDIA SOFTWARE PRIVATE LIMITED,BANGALORE vs. ASST.C.I.T., BANGALORE

Assessee by : Shri. Priyam Singhania, CA Revenue by : Ms. Neera Malhotra, CIT-DR-II Date of hearing : 21/09/2017 Date of pronouncement : 11/10/2017 O R D E R Per Sunil Kumar Yadav, JM :

This appeal is preferred by the assessee against the assessment order passed consequent to the order of the DRP on various grounds. The Director of the assessee company has moved an application stating that an agreement was entered upon between the appellant and CBDT on 31.08.2017 and pursuant to the agreement, assessee/appellant is required to give effect to the Advance Pricing Agreement (APA) Roll-back provisions contained in the agreement, as provided under Rule 10RA(4) of the IT Rules, 1962 (‘the Rules’) and in view of the Rule 10RA(4), the assessee’s request for the withdrawal of transfer pricing ground of appeal referred before the Tribunal. It was further stated that transfer pricing grounds of appeal filed before the Tribunal relate to the covered transactions under the APA and accordingly assessee wants to withdraw the IT(TP)A No. 1522/Bang/2015 Page 2 of 3 grounds of appeal from Nos.1 to 8 referred before the Tribunal. The request of the assessee was not objected to by the Revenue. We therefore allow the assessee to withdraw the ground Nos. 1 to 8 relating to transfer pricing issues. Accordingly, ground Nos. 1 to 8 are dismissed as withdrawn.

2. With regard to ground No.9, the learned counsel for the assessee has contended that this ground relate to deduction under section 10A of the IT Act and the issue is squarely covered by judgments of jurisdictional High Court in the case of Tata Elxsi 349 ITR 98. Therefore, the travel expenses incurred in foreign currency also be reduced from the total turnover in order to compute the deduction under section 10A of the Act. The learned DR did not object to the contentions of the assessee and we accordingly allow the ground of the assessee and direct the AO to reduce the travel expenses incurred in foreign currency from the total turnover also and then recompute the deduction under section 10A of the Act.