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2018 (5) TMI 1686 - AT - Income TaxDisallowance of entertainment expenditure since incurred for non-business purposes - Held that:- Assessee produced sufficient documentary evidences to prove the genuineness of the expenses - however, without properly examining the evidence brought on record, AO disallowed the expenditure on ad–hoc basis - thus disallowance made by the AO is deleted - Decided in favor of assessee. Disallowance u/s 40(a)(i) for payment towards global support service fees - Held that:- It has not been established on record that while rendering the services, EMCAP has made available technical knowledge, knowhow, skill, etc. - thus payment made by the assessee cannot be considered as fees for technical services as defined under Article 12(4)(b) of the India– Singapore tax treaty - in earlier AYs also assessee has not deducted TDS on payment of global support service fee and no disallowance was made - thus being no difference in facts in the impugned assessment year, considering that the payment was made under the same contract, even, applying the rule of consistency, no disallowance under section 40(a)(i) can be made - Decided in favor of assessee. Additions made on account of non-reconciliation of AIS payment of sales tax/professional tax - Held that:- AO has not brought on record sufficient evidence to prove that claim made by the assessee was factually incorrect - thus further investigation is required - matter is restored back to the file of AO for fresh adjudication. Transfer pricing adjustments - method of determination of Arm's Length Price - selection of comparables - Held that:- To determine the ALP of the IT's entered into by the assessee with its AE's, under the head BOSS, further verification is required - thus in the interest of justice, the issue is restored back to the file of the AO /TPO - also reasonable opportunity of hearing shall be given to the assessee - Decided partly in favor of assessee.
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