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2014 (6) TMI 440 - AT - Income TaxTransfer pricing adjustment – International transaction of the provision of agency and marketing support services – Held that:- The findings returned by the TPO - the assessee assuming substantial risks; doing critical functions for its AEs; and allowing the user of its highly-valued intangibles to such AEs - are all in air without any bedrock - there is no reference to the names of such comparables in the TPO’s order - the TPO embarked upon the PSM throughout the length and breadth of his order - The alternative approach of TNMM was not given any serious consideration - Even there is no discussion about the comparables chosen by the assessee and how they were acceptable or not – thus, the matter is to be remitted back to the AO for fresh determination of the ALP of the disputed international transactions of `Provision of Agency and marketing support services’ - the assessee will be allowed a reasonable opportunity of being heard in such de novo determination of the ALP. Disallowance u/s 37(1) of the Act – 50% of club expenses – Held that:- Following CIT vs. Groz Beckert Asia Ltd. [2013 (2) TMI 375 - PUNJAB & HARYANA HIGH COURT] - payment of corporate membership fee has to be allowed as a revenue expenditure in the hands of the company - the amount spent on club membership fee of company’s directors is deductible as business expenditure – Decided partly in favour of Assessee.
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