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2019 (9) TMI 1313 - AT - Income TaxTransfer pricing adjustment in the segment of provision of software development services by the assessee to its associated enterprises - HELD THAT:- Referring to software development services companies functionally dissimilar with that of assessee need to be deselected from final list. Payment of managerial fees disallowed - HELD THAT:- In series of decisions already decided similar issue of payment on account of managerial services availed by assessee from its associated enterprises and have held that the TPO or the Assessing Officer cannot sit in judgment of the decision of businessman to avail services and to make payments for that. Further, the assessee has filed documents justifying not only the need of the services but also the availment of services. The TPO has failed to take into cognizance those documents / evidences and we find no merit in the same. In any case, the said agreement between the parties is in force w.e.f. 01.04.2006 and in none of the earlier years any addition has been made by the TPO/Assessing Officer. In the absence of same and following the rule of consistency we find no merit in the orders of TPO/Assessing Officer and the same is reversed. Deduction allowed u/s 10A/10B of two units operated by assessee - whether the said deduction is to be allowed before adjustment of brought forward losses / depreciation or after it - HELD THAT:- The issue to be covered in favour of assessee by the decision of Hon’ble Bombay High Court in Hindustan Unilever Ltd. Vs. DCIT [2010 (4) TMI 206 - BOMBAY HIGH COURT] . Revenue has failed to controvert the said reliance placed upon by the CIT(A). Accordingly, we hold that the issue stands covered in favour of assessee by the decision of Hon’ble Bombay High Court in Hindustan Unilever Ltd. Vs. DCIT(supra). The ground of appeal No.1 raised by Revenue is thus, dismissed. Deduction on account of write off of obsolete stock - HELD THAT:- Where the evidences are available and the assessee has written off the obsolete stock, then the claim of assessee merits to be allowed. Consequently, we dismiss the ground of appeal No.2 raised by Revenue. The grounds of appeal raised by Revenue are thus, dismissed.
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