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2016 (8) TMI 811 - AT - Income TaxTPA - MAM - Held that:- We remand the issue of “most appropriate method” to be adopted for the determination of the transfer pricing adjustment and also the various adjustments to be made for determination of Arm’s Length Price to the file of the Assessing Officer. Disallowance of additional claim of depreciation on goodwill - Held that:- The goodwill amounting to ₹ 17975.03 lakhs arose as a result of merger and subsequently, the amount was increased by ₹ 16.95 lakhs as additional purchase consideration was paid. The assessee has recognized such goodwill in its books of accounts with effect from 1.1.2007 and claimed depreciation on such enhanced goodwill. We find that the DRP has taken into consideration the fact that the assessee had not claimed depreciation on such goodwill, while filing return of income from 2007-08 to 2011-12, but since the law is clear by virtue of the judgment of the Hon'ble Supreme Court in the case of Smifs Securities Ltd.[2012 (8) TMI 713 - SUPREME COURT ], DRP has directed the Assessing Officer to allow the same after verification of the claim of goodwill. This being a factual finding we do not see any reason to differ from the directions of the Dispute Resolution Panel. However, it is seen that the Assessing Officer, while giving effect to the directions of the DRP, has not allowed the additional depreciation. In fact, there is no discussion about the same in the assessment order. The Assessing Officer is, therefore, directed to give effect to the directions of the DRP. This ground of the assessee is accordingly treated as allowed. Claim of provision for site restoration fund - Held that:- The issue involved in this ground, not being before the authorities below, needs verification as to facts. In view of the same, we deem it fit and proper to admit the said ground of appeal and remand the matter to the file of the Assessing Officer for reconsideration in accordance with law and judicial precedents on the issue. This ground is also treated as allowed for statistical purposes. Claim of additional depreciation on the plant and machinery - Held that:- Assessing Officer has allowed normal depreciation on the very same assets, and has thus impliedly accepted that the said assets were acquired and put to use before the end of the relevant financial year. That being so, the Assessing Officer cannot take a contrary view, while considering the claim of additional depreciation. In view of the same, we deem it fit and roper to remand this issue also to the file of the Assessing Officer to verify the records, and if the depreciation is allowed under S.32, additional depreciation shall also be allowed on the same reasoning.
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