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2018 (5) TMI 146 - AT - Income TaxTPA - taking preoperative cost as a basis for arriving at the ALP - Held that:- As the depreciation claims of the partnership firm of the assessee as that of companies under Company Law are being different, we do not find any reason to interfere with the decision of the DRP, in taking the operating cost exclusive of depreciation for comparison. Accordingly, the order of the DRP is confirmed and Revenue’s grounds on this issue are rejected. Determination of price for purchase of software - Held that:- When the product is purchased the rights automatically transferred and asper the agreement placed on record, 10% of the cost is considered towards IP Rights on which necessary withholding taxes were already considered and paid. In view of that we do not agree with the reasoning given by the DRP in restricting the value of the IP Rights at NIL, since the Hon’ble Delhi High Court in the case of EKL Appliances Ltd (2012 (4) TMI 346 - DELHI HIGH COURT) has already held that TPO / DRP cannot interfere the business decision therefore determining of value at NIL cannot be upheld. We modify the order of the DRP and direct the AO to accept the purchase price as at Arm’s Length. - Decided in favour of assessee
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