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2015 (11) TMI 1737 - AT - Income TaxTPA - addition on account of arm's length price of alleged international transactions resulting from advertisement, marketing and sales promotion expenses ('AMP expenses') - Held that:- The present case is that of a manufacturer and this fact was not controverted by the learned D.R. also, we find it proper to set aside the matter to the file of the TPO/Assessing Officer to decide the issue of AMP afresh as per law laid down by the Hon'ble Delhi High Court in the case of Sony Ericsson Mobile Communications India (P.) Ltd. (2015 (3) TMI 580 - DELHI HIGH COURT) and also the analysis made by us hereinabove. The assessee should be given a fair and adequate opportunity of being heard. The assessee is free to adduce any evidence in this regard. Allowing deduction towards the closing balance lying in PLA claimed under section 43B of the Act. Disallowing expenditure incurred by the appellant during the relevant previous year on account of royalty, holding the same to be capital in nature - claim allowed Disallowance on account of interest expenditure made under Rule 8D - Held that:- We direct the Assessing Officer to delete the disallowance on account of interest expenditure made under Rule 8D of the Income Tax and as regards the administration expenses, we direct the Assessing Officer to set off the suomotu disallowance made by the assessee on this account. Disallowance claimed in respect of provision towards long-term incentive plan holding the same to be an unascertained liability, observing that the liability has not been computed on a scientific basis - Held that:- The provision on account of incentive plan made by the assessee during the year is an ascertained liability. Further, we see that the Assessing Officer has nowhere objected to the method of quantifying the said provision by the assessee. The ground of appeal raised by the assessee is allowed. Credit of TDS - Held that:- Assessing Officer is directed to allow the credit of TDS amounting to ₹ 58,717/- while computing the income tax liability. Not allowing the relief claimed u/s 90 - Held that:- It is seen that relief of ₹ 2,69,492/- claimed under section 90 by the assessee in its return of income was allowed by the Assessing Officer in the draft assessment order passed under section 143(3)/144. However, while making the final computation, the said relief was not allowed. We hereby direct the Assessing Officer to grant the said relief to the assessee.
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