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2018 (2) TMI 1851 - HC - Income TaxTP Adjustment - (AMP) expenditure as an international transaction u/s.92B - compensation to be received by the assessee from its Associated Enterprise (AE) for creating marketing intangibles and promoting the brand name of its AE, specifically when the assessee company was promoting marketing intangibles of its AE though the brand belongs to the AE and not to the assessee - HELD THAT:- As decided in assessee's own case [2017 (7) TMI 1188 - RAJASTHAN HIGH COURT] and Maruti Suzuki case [2015 (12) TMI 634 - DELHI HIGH COURT] AMP expenditure incurred by the assessee could not be treated and categorized as an international transaction u/s 92B of the Act and thereby, the adjustment on account of AMP expenditure is hereby deleted and ground of the assessee’s appeal is allowed. Disallowance of traveling and conveyance expenses - non deduction of tds - company neither specified the nature and purpose of expenses nor any supporting evidence was filed to justify the claim - HELD THAT:- As decided in assessee's own case [2017 (5) TMI 1597 - RAJASTHAN HIGH COURT] has admitted that bills and vouchers of expenses, as desired, were produced for verification which was test checked. The observation of AO that services has been received by the assessee against these payment and therefore he should have deducted tax at source on the value of the gift is ill founded in as much as the payment is not against the services but against the sale of goods to the distributors and therefore TDS provisions are not applicable disallowance made by the AO on this account is deleted. Disallowance of miscellaneous expenses - claim neither verifiable as no supporting evidence was available and also the same could not be established to have been incurred wholly and exclusively for the purpose of business - HELD THAT:- As decided in assessee's own case [2017 (5) TMI 1593 - RAJASTHAN HIGH COURT] AO has made the disallowance without specifying any particular expenses which is not verifiable or not incurred wholly and exclusively for the purpose of business when he has given a finding at Page 2 of the order that bills and vouchers of expenses as desired were produced for verification and examined on test check basis. We also noted that such adhoc disallowance is not approved by the DRP in A.Y. 07-08. Considering the same, the adhoc disallowance made by AO is deleted - Revenue appeal dismissed.
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