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2013 (9) TMI 525 - AT - Income TaxTransfer pricing adjustments - ALP - addition made for guarantee amounting to Rs. 29.18 lakhs - addition made towards notional interest amounting to Rs. 5.64 Crores on loan to subsidiaries - Held that:- following the decision in Four Soft Limited [2011 (9) TMI 634 - ITAT, Mumbai] matter remanded back to AO. TDS on Dealer Incentive and Service Coupons - disallowance under Section 40 (a)(ia) r.w.s. 194 H and 194C - Held that:- as sale took place between the assessee and the dealers, provisions of section 194 H would not be applicable in the case under consideration. - Decision in Jai Drinks (2011 (1) TMI 1035 - Delhi High Court) followed - transaction between the assessee and the dealers were on principal to principal basis. In other words there are certain terma and conditions in the agreement that are clearly indicative of the fact that the transactions were between principal and principal and that even in the matter of sales that were effected by the dealer it did not act as an agent of the assessee company. AO has categorically stated that plan of incentives was not filed before him. In the paper book we do not find any documents related with the incentive scheme. We are of the opinion that matter of incentives allowed by the assessee to its dealers needs to be restored to the file of the AO. He is directed to decide the issue afresh with regard to the provisions of section 194C of the Act. Assessee is directed to furnish the AO details like plan adopted by it, method of calculating the incentives, incentives actually allowed etc. to the AO. - partly decided in favor of assessee. Depreciation of Rs.13,09,000, on intangible assets - evidence regarding use of technical know–how - Held that:- The assessee had acquired technology for defence vehicles from one company of Israel. The assessee had acquired IPR of the said technology. We are of the opinion that existence of an agreement is not sufficient to claim depreciation. Neither before the Assessing Officer nor before us the assessee had shown as to how the technical know–how was used passively during the year under consideration. - Decided against the assessee. Provisions for medical benefits as prior period expenses - Held that:- this is merely a provision and an unascertained liability - The claims also do not relate to the year under consideration. Further we also find that there are no specific approved funds for the provisions. The claim is also against the matching principle. The important fact also to be noted is that this amount has neither been paid to the employees during the year nor it has been deposited in a separate fund. In line with the foregoing, the disallowance is upheld - Decided against the assessee.
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