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2014 (2) TMI 1215 - AT - Income TaxTransfer pricing adjustment - whether in case of availability of internal CUP method, TNMM could not be applied as per CIT(A) - Held that:- We are in agreement with the observations of Ld. CIT(A) that in case of availability of internal CUP method, TNMM could not be applied. What was necessary was that assessee should have been allowed the relief as per difference in the activities in the services rendered by it to related and unrelated parties. The said difference has been described in the tables submitted by the assessee to the TPO vide letter dated 29/11/2004. However, TPO did not discuss those figures in his order but these figures are discussed in the order of Ld. CIT(A). The TPO did not point out any defect in such calculation of the assessee. It has been described in the above submission that assessee had to incur additional cost to the tune of 0.29% in relation to services rendered by it to unrelated parties when the same is compared to the similar services rendered to the related parties. In view of these facts, we are of the opinion that Ld. CIT(A) was right in granting relief to the assessee and we decline to interfere in his findings on this issue.- Decided in favour of assessee Disallowance under section 14A - CIT(A) deleted the entire addition - Held that:- Respectfully following the order of the Tribunal in assessee’s own case for A.Y 2001-02, we hold that ₹ 10,000/- should be disallowed under section 14A of the Act. Accordingly this ground of the revenue is partly allowed. Disallowance in respect of Club Membership Fees - CIT(A) deleted the entire addition - Held that:- This issue is covered in favour of the assessee by the decision of Hon’ble Supreme Court in the case of CIT vs. United Glass Manufacturing Co. [2012 (9) TMI 914 - SUPREME COURT] holding that club membership fees for employees incurred by the assessee is business expense under Section 37 - Decided in favour of assessee. Addition considered as capital in nature in respect of software, support services, repairs and maintenance - CIT(A) deleted the entire addition - Held that:- Similar disallowance was allowed in respect of assessment year 2001-02 to held that such expenditure was revenue expenditure.- Decided in favour of assessee.
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