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2014 (11) TMI 721 - AT - Income TaxTransfer pricing adjustment – Corporate guarantee provided by the company – Held that:- DRP did not take into consideration any of the objections raised by the assessee including the internal CUP provided to it - the matter was also sent back to the TPO on a different issue for fresh consideration – it is difficult to understand as to how the TPO could arrive at the credit rating of the A.E. at BBB-without there being any analysis on the creditworthiness of the A.E – TPO/A.O. did not analyse the issue properly and the DRP also has not applied his mind to the objections raised by the assessee, the matter has to be set aside to the TPO to analyse the issue afresh – thus, the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of assesse. Classification of ESOP - Expenses treated as revenue expenses – Held that:- DRP rightly followed the decision in Commissioner of Income Tax - III Chennai Versus M/s. PVP Ventures Limited [2012 (7) TMI 696 - MADRAS HIGH COURT] wherein it has been held that ESOP expenditure is a revenue expenditure which is allowable while computing the business income of the company as per provisions of the Act – the order of the DRP is upheld – Decided against revenue.
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