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2019 (8) TMI 351 - ITAT DELHITP adjustment to the International transaction of import of finished products - choice of comparables for TNMM analysis of distribution function - TPO/AO has not considered the direction of learned DRP - HELD THAT:- As per the provisions of section 144C(13) the AO is bound to pass the final assessment order in conformity with the direction of the DRP. There is no scope for the AO/TPO for any deviation from the direction issued by the DRP. In the instant case, the learned TPO/AO ought to have followed the direction of the DRP and this omission on the part of the learned AO/TPO should have been rectified by them at the earliest. This omission in the impugned order, which is against the rule of law, cannot be continued. The impugned order to the extent of addition made in respect of adjustment to International transaction of import of finished goods is set aside and matter is remitted back to the AO/TPO to comply with the direction of the learned DRP on the issue of adjustment to the International transaction of import of finished goods. The grounds No. 2 to 2.3 of the appeal are accordingly allowed for statistical purposes. AMP adjustment - expenditure on advertisement, marketing and sales promotion - HELD THAT:- The issue in dispute of determination of AMP adjustment is restored to the file of the Assessing Officer for deciding in accordance with the direction given by the Tribunal in assessment year 2006-07 [2019 (5) TMI 1598 - ITAT DELHI] . It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. TDS u/s 195 - disallowance u/s 40(a)(i) in respect of buying agency services - procurement of goods from outside India - according to the lower authorities, the expenditure on buying agency services are in the nature of “fee for technical services” in terms of section 9(1)(vii) - HELD THAT:- Since identical issue of buying commission paid in response to buying agency agreement for activities of coordination with the manufacture for procurement of goods by the assessee is involved in the instant case, respectfully following the finding of the Tribunal [2013 (1) TMI 106 - ITAT DELHI] we hold that consideration paid by the assessee cannot be classified as fee for technical services and accordingly, not liable for deduction of tax at source and disallowance under section 40(a)(i) is not warranted. The ground of the appeal from 9 to 9.3 are accordingly allowed.
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