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2018 (8) TMI 2029 - AT - Income TaxTP Adjustment - DRP adopting TNMM method to bench mark the international transactions and while doing so rejecting the comparable submitted by the Assessee - HELD THAT:- After perusing the aforesaid findings of the Ld. DRP, it is clear that Ld. DRP has not applied its mind and there is no finding on the submissions of the Assessee. Under these facts and circumstances of the case, we deem it appropriate to restore this issue to the DRP to decide it afresh by giving its speaking finding. We hold and direct accordingly. Nature of expenditure - Treatment of Royalty paid as capital in nature - HELD THAT:- As decided in own case [2016 (7) TMI 1608 - ITAT DELHI] no where does the agreement mention that Patent/Trademark/Software copyright/know-how is being purchased by the licensee/assessee and that the assessee will have an unfettered right over the same. The ld. DR could not point out to any clause in the agreement which would suggest that there was a transfer of ownership right and that by virtue of the agreement the assessee will become the owner of such trademark/ patent/technical know-how. It is undisputed that the royalty expenditure is a recurring expenditure in the present appeals and is payable for every year the technical know-how/patent/trade-mark continues to be used. Thus held it to be revenue expenditure. Depreciation on UPS being computer peripherals at the rate of 15% instead of 60% - HELD THAT:- As decided in own case [2016 (7) TMI 1608 - ITAT DELHI] as relying on CIT vs. BSES Yamuna Power Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] while deleting the disallowance 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%.
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