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2018 (4) TMI 31 - AT - Income TaxTransfer pricing addition on account of AMP expenses - Held that:- It is observed that albeit a specific direction was given by the Tribunal for considering the impact of non-payment of royalty on the question of determining the transfer pricing adjustment of AMP expenses, the TPO did not examine such issue. Under these circumstances, we are left with no option but to send matter back to the AO/TPO for considering the effect of non-payment of royalty on the transfer pricing adjustment in the light of the decision rendered by the Special Bench in the case of LG Electronics (2013 (6) TMI 217 - ITAT DELHI). To sum up, we set aside the impugned order on the transfer pricing addition on account of AMP expenses and send the matter back to the TPO/AO for determining its ALP afresh Allowability of software expenses - revenue or capital expenditure - Held that:- Assessee did not furnish complete details of software expenses. We fail to appreciate as to how the AO could have determined the nature of software expenses, being capital or revenue, without going through the relevant bills. In the given situation, we are of the considered view that it would be in the fitness of things if the impugned order is set aside and the matter is remitted to the AO for examining this issue afresh. It is made clear that the assessee will be duty bound to submit any detail as called for by the AO in this regard. If the assessee again fails to produce such bills/details, the AO will be entitled to draw adverse inference against the assessee.
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