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2016 (7) TMI 840 - AT - Income TaxReopening of assessment - deduction u/s. 10A claimed - Held that:- AO, prima–facie has committed a factual error in recording that the assessee has not claimed the deduction u/s. 10A in its original return of income. In any event, we deem it fit and proper to set aside the issue to the file of the AO with a direction that he shall verify the original returns of income filed by the assessee and dispose-off the issue denovo in accordance with law. Transfer pricing adjustment - what is the nature of service rendered by the assessee to the AE, which is the international transaction-in-question - MAM - Held that:- As the assessee claim that it had supplied the work charts, copies of bills raised etc., to prove that the rate billed for a particular category of employee to the AE and to the non-AE is the same and alleges that likes have not been compared with likes and that he had furnished the details along with comparative charges to the TPO/AO, to demonstrate his claim that there is no variation in the hourly billing rate between the AE and non-AE for man power supply. The AO/TPO is directed to verify the details and recomputed the ALP. In view of the above discussion, we set aside the issue to the TPO should make an analysis of the rates charged to non-AEs and AEs keeping in view the categorisation of the employee and then only arrive at the ALP. In case the assessee is unable to provide the required details and in case the TPO is also unable to cull out the required data, then, in our view, application of TNMM as the most appropriate may be considered. In any event, we are of the opinion that a denovo exercise has to be done on this issue on determination of ALP. Hence, we set aside the matter to the file of the AO/TPO for fresh adjudication in accordance with law. Disallowance of interest on TDS debited to P&L A/c - Held that:- Interest on TDS is not interest paid on income tax per se. Thus, in our view, the disallowance is unwarranted. Addition on account of un-explained share premium - Held that:- The addition was not made by the AO on the ground of non-filing of the evidence to prove the identity, genuineness and creditworthiness of the transaction. The basis of making the addition was non-substantiation of the share premium charged. We hold that the DRP was wrong in coming to a conclusion that the assessee has not provided evidence of identity etc., of the shareholder. In any event, we deem it fit and proper to set aside the matter to the file of AO/TPO for fresh adjudication in accordance with law. The AO/TPO shall provide adequate opportunity to the assessee.
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