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2022 (10) TMI 1149 - AT - Income TaxTP Adjustment - applicability of principle laid down in the Advance Pricing Agreement[APA] for benchmarking the international transactions - HELD THAT:- When in the APA entered into between the tax payer and the CBDT though for the subsequent years, application of most appropriate transfer pricing method and arms length price of these transactions have already been agreed upon between the tax payer and CBDT and there is no change in the FAR and nature of the international transactions entered into during the year under consideration vis-à vis subsequent years, principle laid down in the APA for benchmarking the international transactions in question shall have a guidance value. Moreover, in these days it is endeavor of the Union of India to stop multiplicity of the litigation and this case falls in the category of cases where litigation can be minimized. Consequently, we are of the considered view that APA already entered into between the tax payer and CBDT has the persuasive value so the matter is remitted back to the TPO to decide afresh in the light of the APA already entered into by providing opportunity of being heard to the tax payer. So aforesaid grounds are determined in favour of the assessee for statistical purposes. Nature of expenses - computer software expenses - revenue or capital expenditure - HELD THAT:- This issue has already been decided in assessee’s own case by the co-ordinate Bench of the Tribunal which has since been confirmed by the Hon’ble Bombay High Court [2020 (7) TMI 648 - BOMBAY HIGH COURT] by treating the software expenses as revenue expenditure. The AO is directed to treat the computer software expenses claimed by the assessee as revenue expenses.
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