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2015 (11) TMI 184 - AT - Income TaxTransfer pricing adjustment - addition on account of AMP expenses - Held that:- AO has made the addition on account of transfer pricing in relation to expenses incurred by assessee in outbound business segment by comparing the expenses incurred by comparables in the inbound segment. We understand that two segments are materially different and require different level of expenditure for promotion of these business segments. Therefore we are of the firm view that this matter should be reconsidered by AO who would decide the issue afresh in accordance with law. - Decided in favour of assessee for statistical purposes. Addition u/s 40(a)(ia) - payment to overseas representatives without deduction of tax at source - Held that:- Hon’ble Tribunal vide its order dated 19th December 2014 had decided the issue in favour of assessee after analysis of the agreement with overseas representatives and had arrived at a conclusion that the nature of services provided by these agents were not in the nature of managerial technical or consultancy services. In the present years the agreements entered into with agents were not on record and therefore without examination of these agreements the decision as to whether the services do not fall in managerial technical or consultancy category can not be arrived at. Therefore in view of substantial justice we are of the view that the AO should examine agreements to determine the nature of services provided by agents and if the nature of services as mentioned in the agreements is similar as in the years 2007-08 and 2008-09 and the services are not in the nature of managerial technical or consultancy services then he should allow the same as the Hon’ble Delhi High Court has upheld the decision of Hon’ble Tribunal for assessment year 2007-08 and 2008-09. - Decided in favour of assessee for statistical purposes. Disallowance of advertisement & publicity charges paid to non-resident entities without tax deduction at source - Held that:- The issue of advertisement and publicity charges will also be examined by AO afresh keeping in view the terms and conditions of the agreement of Advertisement and AO will examine the nature of services rendered by such payees. Therefore the issue of advertisement of publicly expenses is restored to A.O for re-adjudication. As regards amount paid representing AMC for computer software we find that the payment is clearly for provision of technical services and therefore the payments were liable for tax deduction at source, in view of the judgment of Hon’ble Delhi High Court in the case of Havells India [2012 (5) TMI 449 - DELHI HIGH COURT ] and therefore the addition to the extent of ₹ 19,39,692/- is confirmed. In view of the above ground No. 4 in assessment year 2010-11 is partly allowed for statistical purposes and is partly dismissed. Excess depreciation on computer peripherals - Held that:- Computer accessories and peripherals such as, printers, scanners and server etc. form an integral part of the computer system. In fact, the computer accessories and peripherals cannot be used without the computer. Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60%. See Rajdhani BSES [2010 (8) TMI 58 - DELHI HIGH COURT] - Decided in favour of assessee.
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