Ward 6(1)(1), Technologies Pvt. Ltd., Bengaluru. Unit 1 & 2, Level 2, Navigator Building, ITPB, Whitefield Main Road, Bangalore 560 066. PAN: AAICS 5777P APPELLANT RESPONDENT IT(TP)A Nos. 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Assessment years : 201011, 201011 & 201213 M/s. Sabre Travel Vs. The Income Tax Officer, Technologies Pvt. Ltd., Ward 6(1)(1), Bangalore 560 066. Bengaluru. PAN: AAICS 5777P APPELLANT RESPONDENT Revenue by : Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru. Assessee by : Shri K R Vasudevan, Advocate Date of hearing : 12.08.2020 Date of Pronouncement : 31.08.2020 IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 2 of 20 ORDER Per N.V. Vasudevan, Vice President IT(TP)A No.203/Bang/2015 is an appeal by the revenue, while IT(TP)A No.559/Bang/2015 is an appeal by the assessee. Both the appeals are directed against the order dated 30.1.2015 of the ITO, Ward 6(1)(1), Bengaluru passed u/s. 143(3) r.w.s. 144C(13) of the Incometax Act, 1961 [the Act] in relation to assessment year 201011. 2. IT(TP)A No.595/Bang/2015 is an appeal by the assessee against order u/s. 154 of the Act passed by the AO rectifying certain computational errors in the final order of assessment dated 30.01.2015 for AY 201011 which is the subject matter in IT(TP)A No.203/Bang/2015. At the time of hearing, the ld. counsel for the assessee submitted that a decision in the cross appeals for AY 201011 would also decide the dispute in the order u/s. 154 of the Act and therefore this appeal viz., IT(TP)A No.595/Bang/2015 infructuous and may be dismissed. Accepting the plea of the ld. counsel for the assessee, this appeal is dismissed as infructuous. 3. Now we will take up for consideration the cross appeals by the assessee and revenue for AY 201011. 4. The issue in the revenue's appeal for AY 201011 is with regard to determination of Arm's Length Price in respect of international transaction of rendering of Software Development Services by the Assessee to its holding company. In the Assessee's cross appeal being IT(TP) A.No.559/Bang/2015, ground Nos. 1 to 8 are with regard to Transfer pricing issues and can be conveniently decided together with the appeal of the revenue. The grounds of appeal raised by the Revenue in its appeal and IT(TP)A Nos.203, 559 & 595/Bang/2015 & ITA No.332/Bang/2018 Page 3 of 20 the additional grounds of appeal raised by the revenue in its appeal read thus: Grounds of Appeal "1. The directions of the Dispute Resolution Panel are opposed to law and facts of the case. 2. On the facts and in the circumstances of the case the Dispute Resolution Panel erred in law in directing the AO to exclude the telecommunication expenses, insurance charges and foreign exchange loss both from the export turnover as well as from total turnover for the purpose of computation of deduction u/s 10A, without appreciating the fact that the statute allows exclusion of such expenditure only from export turnover by way of specific definition of export turnover as envisaged by Sub clause (4) of Explanation 2 below Subsection (8) of Section 10A and the total turnover has not been defined in this Section. 3. On the facts and in the circumstances of the case the Dispute Resolution Panel erred in directing the AO to compute deduction u/s 10A in the above manner by placing reliance on the decision of Hon'ble High Court of Karnataka in the case of M/s Tata Elxsi Ltd., which has not become final since the same has not been a