Allows Sec 10A deduction on voluntary TP-adjustment; Follows iGate over Deloitte ruling

Pune ITAT rules that assessee is entitled to Sec 10A deduction on additional income offered on account of suo-moto TP-adjustment for AY 2011-12; Notes that TPO/ CIT(A) disallowed the deduction u/s 10A as assessee failed to bring into country the export proceeds in foreign exchange as contemplated in Explanation 2 to Sec 10A in respect of such additional income offered; However, ITAT opines that the additional income was artificial/ notional income computed u/s 92(1) and it was neither export turnover nor total turnover but in fact profits of business u/s 10A(4), states that “in the absence of it being offered as export turnover or total turnover, then there could not be any condition for getting foreign exchange to India”; Further noting that additional income was offered to tax as business profits, opines that “... it forms part of profits of business and while computing the deduction under section 10A(4) of the Act, the said profits have to be taken into consideration”; Relies on Bangalore ITAT ruling in iGate Global Solutions allowing Sec 10A deduction in respect of suo-moto TP-adjustment (subsequently confirmed by Karnataka HC) and states that Mumbai ITAT ruling in Deloitte Consulting India taking a contrary view would not stand in view of ratio laid down by Karnataka HC, clarifies that “Though the said decision is of non-jurisdictional High Court, but the same is binding on the Tribunal in the absence of any contrary decision of the jurisdictional High Court”; Also holds that proviso to Sec 92C(4) [which inter alia provides that no deduction u/s 10A shall be allowed in respect of such amount of income, by which the total income of assessee had been enhanced after computation of ALP of international transactions] will not be applicable in such cases:ITAT:ITAT