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2019 (12) TMI 1628 - AT - Income TaxTP Adjustment - Addition in respect of technical know-how fees - international transaction was benchmarked by using TNMM as the most appropriate method - HELD THAT - We noted that the above issue has already been considered by Tribunal in assessee s own case 2019 (11) TMI 705 - ITAT MUMBAI and there is no distinguishable facts rather facts are exactly identical and the same agreement i.e. consultancy agreement dated 16.03.2008 was under consideration by virtue of which the assessee has made payment of technical know-how fee to its AE or group concerns Merck KGAA. In view of the above we direct the AO to delete this addition. This issue of assessee s appeal is allowed. Disallowance of expenses relatable to exempt income u/s 14A read with Rule 8D(2)(ii) and under Rule 8D(2)(iii) - HELD THAT - Assessee stated that the assessee has earned dividend income of Rs.86, 979/- and disallowance more than this cannot be made in view of the decision of the Hon ble Delhi High Court in the case of Joint Investment Pvt. Ltd. 2015 (3) TMI 155 - DELHI HIGH COURT wherein it is held that the window for disallowance was indicated in section 14A of the Act and was only to the extent of disallowing expenditure incurred by the assessee in relation to the exempt income. This proportion or portion of the exempt income surely cannot swallow the entire amount. In view of the above Delhi High Court decision the learned Counsel for the assessee fairly conceded that the disallowance under Rule 8D(2) can be retained only to Rs. 86, 979/- to the extent of dividend income. As the issue is covered by Hon ble Delhi High Court (supra) respectfully following the said decision we direct the AO to restrict the disallowance of expenses qua the exempt income at Rs.86, 979/-. We direct the AO accordingly. This issue of assessee s appeal is partly allowed. Disallowing depreciation in respect of intangible assets purchased by the assessee - HELD THAT - This issue is also covered by Tribunals decision in assessee s own case wherein the same set off of intangible assets purchased was under consideration and Tribunal 2017 (1) TMI 1692 - ITAT MUMBAI opined that in the interest of justice matter should be restored back to the file of the FAA for fresh adjudication. He is directed to decide the issue afresh after affording a reasonable opportunity of hearing to the assessee. AO disallowing the merger expenses and allowing only 20% of the total amount - HELD THAT - We remit this issue to the file of the AO/ DRP for re-adjudication the same. This issue of assessee s appeal allowed for statistical purposes.
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