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2016 (11) TMI 1453 - AT - Income TaxTPA - determination of arms length price - adjustments in respect of the interest on outstanding receivables that the Ld. - AO also disallowed certain Corporate Additions alleged to have been made for the purposes of business - pure market support service provider - Held that:- Explanation has sought to include, 'any other debt arising during the course of business' as international transaction with a retrospective effect thereby covering the assessment year under consideration That being so, the payment/nonpayment of interest or receipt/non-receipt of interest on the loans accepted or allowed in the circumstances as mentioned in this clause of the Explanation, also become international transactions, requiring the determination of their ALP. - The decisions relied upon by the assessee are prior to the insertion of the explanation to section 92B and therefore the ratio laid down cannot be applied to the assessee before us - As the facts have not brought on record by the assessee, in our opinion the DRP was right in directing the Ld.TPO to examine the facts and ascertain the interest on receivables in accordance to the decision of Hon’ble Delhi High Court in the case of CIT vs. Cotton Naturals India private limited [2015 (3) TMI 1031 - DELHI HIGH COURT]. - Matter restored before the TPO. Disallowances u/s 37(1)- assessee could not discharge burden of proving that the advertisement, business promotion expenses, and travel expenses to doctors and other medical personnel are business expenses - Held That:- assessee has incurred expenses in the garb of marketing the cardiac machine, onus is upon the assessee to prove that the expenses incurred do not violate any law that may be applicable. we are of the considered opinion that entertaining doctors inside/abroad and luring doctors to solicit business by, which is prohibited under Regulation 6.8.1 of the MCI Regulations, and hence is clearly not allowable - Decided against assessee.
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