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2019 (5) TMI 1971 - AT - Income TaxTP Adjustment - selection of MAM - assessee had applied TNMM method for benchmarking its international transactions and had declared that its margins were higher than with mean margins of comparables - HELD THAT:- Where the issue stands covered by the order of jurisdictional High Court in the case of assessee itself, there is no merit in the orders of authorities below in making aforesaid transfer pricing adjustment in the hands of assessee both with respect to exports to associated enterprises and with respect to imports from associated enterprises. It may be pointed out that majority of transactions have been accepted to be at arm's length price by the TPO by applying TNMM method, only in respect of few transactions, the TPO had applied CUP method. There is no merit in the order of TPO in this regard and reversing the final order passed by Assessing Officer, we allow the claim of assessee and direct the Assessing Officer to delete the transfer pricing adjustment made in the hands of assessee. The grounds of appeal No.2 and 3 are thus, allowed. Non allowance of additional depreciation on tools purchased by the assessee - case of assessee is that the assessee had claimed additional depreciation on plant & machinery u/s 32(1)(iia) which has been allowed in the hands of assessee - HELD THAT:- The aim under the Finance Act, 2005 while allowing the additional depreciation under section 32(1)(iia) of the Act was extended to new industrial undertaking on additional investments. Once the earlier basis of allowing additional depreciation for the units where the capacity had to be increased for about 25% is no more and now additional depreciation is to be allowed on additional investments and where the plant includes tools, the assessee is entitled to the claim of additional depreciation under section 32(1)(iia) of the Act on the aforesaid tools purchased by assessee. Consequently, we direct the AO to allow the claim of assessee of additional depreciation under section 32(1)(iia) - Appeal of assessee is allowed.
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