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2020 (11) TMI 1098 - AT - Income TaxTP Adjustment - international transaction of purchase of fixed assets - charge of markup by AE to assessee at rate of 8% on certain fixed assets purchased by the assessee - Whether the transaction of purchase of fixed assets is covered as an international transaction or not ? - HELD THAT:- As relying on case of Honda motorcycle and Scooter India private limited. [2015 (4) TMI 502 - ITAT DELHI] here cannot be adjustment in the hands of the assessee with respect to the arm’s-length price of the international transaction of purchase of fixed assets per se. In the present case the arm’s-length price adjustment is only on account of purchase of fixed assets. Admittedly the assessee has not claimed any depreciation during the year. However whenever assessee claims depreciation on that the adjustment with respect to the above transaction would impact the actual cost of the asset. Therefore, in absence of any claim of depreciation by the assessee we direct the learned transfer pricing officer/assessing officer to delete the above adjustment to the total income of the assessee. Appeal of the assessee is allowed.
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