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2016 (5) TMI 548 - AT - Income TaxAllowance of Royalty as business expenditure - transfer pricing adjustment - Held that:- In the present appeal, what we see is the TPO sitting on judgment on the business and commercial expediency of the assessee which is erroneous as per the provisions of the Act as laid down clearly by the Hon'ble Delhi High Court in EKL Appliances (2012 (4) TMI 346 - DELHI HIGH COURT). Furthermore, we are of the opinion that once TNMM has been applied to the assessee company’s transaction, it covers within its ambit the royalty transactions in question too and hence the Department’s contention for applying the CUP method is erroneous. Hence we hold that the addition made by the TPO and upheld by the DRP is unsustainable and is liable to be deleted. - Decided in favour of assessee
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