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2013 (12) TMI 942 - AT - Income TaxTransfer price adjustments - arm's length price (ALP) - Held that:- there is no cogent basis for sustaining the addition made with regard to the payment of technical fee, training fee, testing expenses, payment of modification of tools and payment of design and development expenses. - DRP has not given any cogent reasons. - No additions - Decided in favor of assessee. Whether the matter should be remanded back - Held that:- TPO has made the elaborate order whereby he has only dealt with royalty aspect and not dealt with the other allied payments. The royalty payment has been allowed by the DRP. In these circumstances, assessee will be put to great hardship, if the TPO is given a second inning to make out a fresh case. - Decided against the revenue. Excessive and unreasonable expenses u/s 40A(2) - Secondment of employees - AO in the assessment order amongst other things, has alleged that the expenses are bogus in nature and the same have been booked by way of some tax avoidance measures. However, the Assessing Officer towards the end, has allowed 50% of such expenses as excessive and unreasonable - Held that:- DRP has also affirmed Assessing Officer's action by stating that claim of assessee that 17% of the time of employees of MIL has been spent for the assessee is also without any supporting evidence. Thus, we find that there is conflict between submissions of the assessee and finding by the authorities below. - Issue remitted back.
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