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2023 (1) TMI 1320 - AT - Income TaxDisallowance of service charges and other reimbursement(s) - Addition restricted to that @ 30% in the CIT(A)'s order - Disallowance of reimbursement of travelling expenses and depreciation on coolers - HELD THAT:- We find in this factual backdrop that all these issues are no more res integra as the tribunal’s coordinate bench’s common order in assessment years 2000-2001 to 2004-2005 involving assessee’s and Revenue’s cross-appeals decided [2022 (4) TMI 1571 - ITAT PUNE] inter alia, has accepted the former’s claim of various expenses restricted to 30% in entirety by following its earlier orders, partly uphold the learned lower authorities action disallowing travelling expenses @ 10% only on estimation basis and rejected the department’s stand on depreciation on coolers provided to bottlers/vendors vis-à-vis their WDV in full, respectively. Both the parties are fair enough in not pinpointing any distinction on facts or law in the impugned assessment year as well so far as these three issues are concerned. We thus adopt judicial consistency to decide the first and foremost issue of reimbursement [restricted to 30% in the CIT(A)'s order] to full extent assessee’s favour, uphold only 10% of travelling expenses and accept it’s stand relating to depreciation on coolers in very terms. TP Adjustment - We advert to assessee’s pleadings raised during the course of hearing that the department, and more particularly, the TPO took a diametrically opposite view in case of the assessee and its AE regarding the very issue. Faced with the situation and more particularly in light of the fact that the learned “Panel” has not discussed even the most appropriate method [in short “MAM”] before rejecting the assessee’s contentions, we deem it appropriate to restore these remaining grounds back to the learned “DRP” for its fresh adjudication on merits, preferably within three effective opportunities of hearing as much water has flown down the stream since the impugned assessment year 2006-07. Ordered accordingly. The assessee’s 2nd substantive ground herein is accepted for statistical purposes to the above extent. Disallowance of marketing support services - We note that the Assessing Officer has refused to follow the “DRP’s” directions regarding the matter in light of Sec. 144C(13) r.w.s. 144C(5) of the Act. He has not carried-out any verification as per his detailed discussion in page-5 para-2 of the assessment order. Faced with this peculiar situation and in view of the clinching fact that the assessee may not be able to completely verify its detailed evidence of assessment year 2007-08 in the year 2023, we deem it appropriate to restrict the impugned disallowance to that @ 5% only. Ordered accordingly. TP Adjustment on AMP expenses - international transaction or not? - HELD THAT:- CIT-DR could hardly dispute that case law Maruti Suzuki India Ltd. [2015 (12) TMI 634 - DELHI HIGH COURT] has already held that such “AMP” transactions do not amount to an international transaction u/s. 92B of the Act. Faced with the situation, we reverse learned lower authorities action to this limited extent.
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