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2014 (12) TMI 795 - ITAT DELHIDetermination of ALP – AMP expenses to be treated as international transaction or not - Assessee is a wholly owned subsidiary company of Haier Electrical Appliances Corp. Ltd., China engaged in the business of distribution of consumer durables – Held that:- Following the decision in LG. Electronics India P. Ltd. Versus Assistant Commissioner of Income-tax [2013 (6) TMI 217 - ITAT DELHI] – the matter is to be remitted back to the TPO for fresh consideration – Decided in favour of assessee. Allowability of provision for warranty – Expenses to be treated as contingent expenses or not -Held that:- Assessee rightly relied upon M/s. Rotork Controls India (P) Ltd. Versus Commissioner of Income Tax, Chennai [2009 (5) TMI 16 - SUPREME COURT OF INDIA] - it shows that in case the assessee is able to demonstrate that the provision has been made on a scientific basis it has to be treated as an ascertained liability and not a contingent liability - The AO to examine the issue afresh. Validity of penalty imposed u/s 271AA – Held that:- The fact that the arguments are not found recorded in the order is not a shortcoming as far as the assessee is concerned and the issue may require an internal administrative redressal if so warranted at the end of the FAA - the order under challenge was passed on 29.11.2010 - the assessee has canvassed that part of the expenses were reimbursed which fact has been found to be acceptable on considering the material available on record by the FAA in quantum proceedings - bright line as a concept was introduced for the first time as far as the assessee is concerned in the year under consideration and even otherwise as would be demonstrated from the arguments advanced before the Special Bench – assessee rightly contended that there was a reasonable cause on account of which the specific transaction was not disclosed as an international transaction in its Form 3CEB – the belief od the assessee was bonafide that the documentation placed on record is correct and as per the requirement of the law at the relevant point of time, thus, penalty u/s 271AA was not attracted – Decided in favour of assessee.
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