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2018 (10) TMI 1669 - AT - Income TaxTP Adjustment - method adopted by the transfer pricing officer for computing the arm's-length price - HELD THAT:- It is undisputed that the method of computation of arm's-length price adopted by the transfer pricing officer is not as per any of the method prescribed under the act for the extant period. M/S. KODAK INDIA PVT. LTD. [2016 (7) TMI 677 - BOMBAY HIGH COURT] held that method adopted by revenue to determine ALP was alien to the methods prescribed under section 92C and, therefore, declined to restore the issue to the Assessing Officer for redetermining the ALP by adopting one of the methods as listed out in section 92C. Respectfully following the precedent we hold that since the method adopted by the transfer pricing officer for computing the arm's-length price is not as per the provision of law, the action of the authorities below is not sustainable. Hence, we direct that addition in this regard should be deleted. Addition u/s.14A - Dividend income as exempt from tax u/s. 10(34) - HELD THAT:- It is the case of the assessee that financials for the current year are same. In this view of the matter disallowance on account of interest for making the tax-free investments is not sustainable. Furthermore, the learned counsel of the assessee placed reliance upon the decision in the case of HDFC Bank Ltd. [2016 (3) TMI 755 - BOMBAY HIGH COURT] is also cogent in this regard. As regards the disallowance of 0.5% on the average value of investment is concerned the submission of the learned counsel of the assessee is cogent that the special bench in the case of Vireet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] has held that for computing the average value of investment only investments which yield exempt income is to be considered. Accordingly, we remit this issue to the file of assessing officer to consider the issue afresh in light of the decision of special bench in the case of ACIT vs. Vireet Investment Pvt. Ltd. for the necessary computation in this regard. Deduction u/s.80IA - assessee opted not to claim the deduction under this section for the current year and the deduction will be claimed by it for 10 consecutive years beginning from any of the subsequent assessment year as may be decided by the company - HELD THAT:- As decided in WARTSILA INDIA LIMITED VERSUS DCIT, RANGE-3 (3) MUMBAI [2015 (6) TMI 518 - ITAT MUMBAI] no claim was made by the assessee u/s 80IA and admission by the D.R. that no such claim was made, there is no question of making any addition/disallowance. - Decided in favour of the assessee.
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