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2014 (6) TMI 640 - ITAT DELHINon-speaking order - Transfer pricing adjustment – Royalty payment to AE – Held that:- The order of the DRP is a laconic order - the speaking order has not been passed by the DRP - It has not given any reason for disposal of the assessee’s objections and far reaching its conclusions - It has also not adopted the reasons contained in the draft assessment order nor even the reasons that are contained in the order of the TPO - The assessee has a right to know the reason and Appellate Tribunal also can scrutinize the correctness of the said order only if reasons thereto are contained in the order - In the absence of any reasoning the order so passed is set aside – the matter is remitted back for the fresh adjudication – Decided in favour of Assessee. Disallowance u/s 14A r.w. Rule 8D of the Act – Held that:- Assessee claimed that the investment in mutual funds was made out of the surplus funds - This fact needs to be examined and a finding has to be returned by the Assessing Authority – thus, the matter is to be remitted back to the Assessing authority for fresh adjudication with respect to the Maxopp Investment Ltd. & Others Versus Commissioner of Income Tax [2011 (11) TMI 267 - Delhi High Court] – Decided in favour of Assessee. Disallowance of royalty and technical fees – Held that:- The AO did not have benefit of THE COMMISSIONER OF INCOME TAX-II Versus MUNJAL SHOWA LTD. [2010 (9) TMI 121 - DELHI HIGH COURT] - thus, the matter is required to be remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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