Tribunal held that the assessee is not entitled to S. 10A/ 10B deductions in respect of transfer pricing adjustments applies only where the adjustment is made by the AO/ TPO. If the assessee suo motu makes the adjustment and offers higher income, s. 10A/10B deduction cannot be denied. Also, as such notional income is not “export turnover”, the condition in s. 10A/10B that foreign exchange must be brought to India does not apply (Deloitte Consulting v. ITO in ITA No.157/Mum/2012 dt. 15-07- 2015) ( Mum) (Trib) is not followed as it is contrary to CIT v. iGate Global Solutions Ltd (ITA No.453/2008, dt. 17.06.2014, (Karn) ( HC)). ( ITA No. 1051/Pun/2015, dt. 12.03.2018)(AY.2011-12)
Approva Systems Pvt. Ltd. v. DCIT ( 2019) 73 ITR 219/ 180 DTR 438 (Pune)(Trib) , www.itatonline.org
S. 10A : Free trade zone – If the assessee suo motu makes the adjustment and offers higher income, S. 10A/10B deduction cannot be denied. Also, as such notional income is not “export turnover”, the condition in s. 10A/10B that foreign exchange must be brought to India does not apply [ S. 10B, 92CA]