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2019 (5) TMI 1681 - AT - Income TaxTP Adjustment - Advertising, Marketing and Promotion (AMP) adjustment - HELD THAT:- As in assessee’s own case [2018 (1) TMI 1033 - ITAT MUMBAI] TPO had held that assessee should have been compensated by its AE for the AMP expenditure incurred by it. We have gone through the agreements entered in to by the AE.s with the assessee, that in the agreements there is no condition about sharing of AMP, that the agreements talks of using best efforts to market and distribute the product or promote the products in a commercially reasonable manner. In our opinion, these terms do not give any indication that the AE and the assessee had to share AMP expenses. Secondly, if the AE was benefitted indirectly by the AMP expenditure incurred by the assessee, it cannot be held that it had entered into agreement for sharing AMP expenses. We are also of the opinion that Bright Line Method should not have been applied by the TPO. Disallowance of depreciation on building - HELD THAT:- We find that the above issue is covered in favour of the appellant by the decision of the ITAT in assessee’s own case for AY 2009-10 [2015 (12) TMI 1673 - ITAT MUMBAI] granted depreciation on plant and machinery and building. Disallowance of payment to doctors - AO disallowed convention expenses incurred by the appellant u/s 37(1) on the ground that it was in violation of clause 6.8 of the MCI Regulations and consequently, was in violation of the CBDT Circular No.5/2012 dated 01.08.2012 - HELD THAT:- ITAT in assessee’s own case for the AY 2010-11, relying on the decision of Max Hospital [2014 (1) TMI 1829 - DELHI HIGH COURT] and PHL Pharma [2017 (1) TMI 771 - ITAT MUMBAI] held that (i) MCI guidelines are applicable to the professionals i.e. Doctors only and do not govern the other tax entities or individuals other than doctors and (ii) MCI, as a body can formulate policy for Doctors and the appellant is not a practicing professional and therefore, any guidelines issued by it cannot decide the allowability or otherwise of an expenditure under the Act. Facts being identical, we follow the above order of the Co-ordinate Bench. Depreciation on non-compete fees - HELD THAT:- ITAT in assessee’s own case for AYs 2003-04, 2004-05, 2008-09, 2011-12 has admitted the similar additional grounds filed on consequential depreciation and directed the AO to grant consequential depreciation on non-compete fees.
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