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2015 (1) TMI 520 - ITAT PUNEDisallowance u/s.14A - CIT(A) had reduced the said disallowance by deleting 50% of the disallowance - Held that:- Provisions of Rule 8D of the Rules were introduced w.e.f. 01.04.2008 are not applicable to the years prior to the said insertion. However, the Hon'ble Bombay High Court in Godrej Boyce Manufacturing Co. Ltd. Vs. CIT (2010 (8) TMI 77 - BOMBAY HIGH COURT) had elaborately considered the issue of applicability of the provisions of Rule 8D of the Rules to the years prior to 01.04.2008 and it was held that proportionate disallowance out of administrative and personnel expenses may be made, keeping in mind the facts of the case. In view thereof, we direct the disallowance of ₹ 2 lakhs out of administrative expenses - Decided partly in favor of the assessee. Transfer pricing adjustment - Held that:- The comparison between the export to associated enterprises and export to third parties would not provide accurate results as economic value of the transactions, risk involved were different. We find merit in the plea of the assessee in this regard. We uphold the aggregation of transactions in the TP study carried on by the assessee where the said transactions after benchmark were at arm's length price, no adjustment was to be made. In view thereof, we find no merit in the analysis carried out by the TPO by benchmarking the transactions of exports to third parties with exports to associated enterprises resulting in addition of ₹ 22.49 lakhs. In view of our discussion herein above, we delete the addition of ₹ 22.49 lakhs - Decided in favour of assessee.
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