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2018 (7) TMI 1475 - AT - Income TaxTransfer pricing addition - Marketing and after-sales support services characterized by the assessee as ‘Service fee received’ - determination of comparable companies - Held that:- The assessee rendered marketing support services for its AE in connection with sale of tobacco products in India, Nepal, Bangladesh and Afghanisthan,thus companies functionally dissimilar with that of assessee need to be deselected from final list. Disallowance u/s 40(a)(i) - Held that:- Adverting to the facts of the instant case, we find that the DRP has not considered the assessee’s claim for non-deduction of tax at source in the light of the respective Double Taxation Avoidance Agreements (DTAA). It is further observed that the assessee did not adduce necessary Agreements with the payees before the Assessing Officer. Since the orders of the authorities below are silent on these vital aspects having bearing on the application of section 40(a), respectfully following the precedent, we set aside the impugned order and remit the matter to the file of AO for deciding it afresh as per law, after allowing a reasonable opportunity of being heard to the assessee.
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