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2016 (10) TMI 424 - AT - Income TaxNon deduction of tds - disallowance made for non monetary perquisites - Held that:- We find that the assessee had paid income-tax in respect of salary paid to WJ as per the employment agreement, that it had suo motu made a disallowance for non-monetary perquisites, that WJ had offered the disputed amounts in his return of income. Considering the fact that WJ had paid the tax on the amount in question, we are of the opinion that the order of the FAA needs no interference whatsoever, upholding his order Ground No. 1 is decided against the AO. Deletion of club membership fee - Held that:- After hearing the rival submissions we find that the Hon'ble Apex Court, in the case of United Glass Mfg. Co. Ltd. (2012 (9) TMI 914 - SUPREME COURT ), has held that club membership fees incurred by an assessee is a business expenditure and has to be allowed as per provisions of section 37 of the Act. - Decided against AO Transfer pricing adjustment - selection of comparables - Held that:- We find that the AO had made adjustment as the assessee had included loss making entities in the comparables list, that the FAA had ignored the fact that two of the five comparables were showing loss , that he emphasised on net worth of the company rather than the losses suffered by the companies, that both the companies were suffering losses for continuously three years . In our opinion the AO was justified in excluding the constant loss making entitles from the list of comparables. Therefore, reversing the order of the FAA Ground No. 3 is decided in favour of the AO.
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