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11. We have heard the rival submissions and perused the material available on record.

The assessee in the year under consideration e-filed its return of income declaring an income of Rs.24.74 crore odd after claiming the exemption u/s 10A of the Act at Rs.32.78 crore odd. The record shows that the AO in the order u/s 143(3) r.w.s.144C passed pursuant to the DRP's directions noticed that the assessee is engaged in the development of software in various stages like engineering, research, development, debugging, coding, quality controls checks, testing application, designing & programming and is exporting its services to M/s Adobe System Inc., USA and to M/s Adobe Systems Software, Ireland. Apart from that the assessee was also providing Marketing & Support Services for the products of M/s Adobe System Inc., USA in India.

- "Marketing activities

- Adobe India undertakes marketing activity in India under the guidance of Adobe Ireland. In inter alia performs the following activities;-

- Visit distributors & direct customers to inform them about existing Adobe application products to be licensed by Adobe Ireland.

- Visit distributors direct customers and strategic partners to inform them and explain new Adobe Application products to be licensed in India.

- Follow up until delivery of orders, which are directly put in, by distributors & other customers.

- Market Research-Adobe India informs Adobe Ireland of current market trends & developments in India by monitoring the industry, market prices, political factors & supply & demand in Indian market. The service agreement between Adobe India & Adobe Ireland shows:- Adobe Ireland desires to appoint Adobe India as its representative and to delegate to Adobe India the performance of certain of its duties to its distributors in connection with pre-sales, as well as marketing and training services related to the India territories market."

I.T.A .No.-1163 & 1004/Del/2014 11.4. The TPO rejecting the multiple year data and considering the functions performed was of the view that the services provided by the assessee to its AE entitle the assessee for higher remunerations than what could be available to a routine service provider as on examining the nature of services provided by Adobe India he was of the view that services provided were in the nature of business support services. Considering the functions, he was of the view that since complete business support i.e. pre-sales support, marketing training including the whole gamut of business support services were being provided by the assessee to its foreign AE i.e Adobe Ireland, he was of the view that for the services provided "the fees paid to Adobe India by Adobe Ireland will be equal to costs incurred by Adobe India in providing sales support services plus 1.5% of regional revenue from the India Territories", keeping the functions performed by the assessee was not adequate. Accordingly considering the functions performed the routine cost plus 1.5% of the Regional revenue of India Territories was considered to be inadequate compensation.