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2018 (5) TMI 953 - AT - Income TaxDenial of adjustment of abnormal cost on account of rent and other maintenance expenditure relating to unutilized capacity held for domestic business - Held that:- The facts in assessment year 2008-09 are identical and a perusal of the directions of the Hon’ble DRP also shows that even the Hon’ble DRP has accepted that approximately 25% of the premises of the assessee were lying vacant/idle during the year under consideration. Accordingly, on identical facts, it is our considered opinion that requisite adjustment should be allowed to the assessee on this issue. Accordingly, we restore this matter to the file of the Assessing Officer/TPO with a direction to work out the requisite adjustment for the idle capacity in respect of rent and related charges after giving assessee proper opportunity. Thus, this ground stands allowed for statistical purposes. Adjustment in respect of royalty - Held that:- As considered the assessee’s application for admission of additional evidence which has been filed under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and looking to the facts and circumstances, it is our considered opinion that this Addendum to the agreement goes to the very root of the matter and it will suitably assist the lower authorities to reach a logical conclusion on the issue. Since the lower authorities did not have the benefit of examining this document, the matter has to be necessarily restored to the file of the Assessing Officer/TPO for deciding the issue of royalty afresh after duly considering this agreement and after giving due opportunity to the assessee to present its case.
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