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2018 (9) TMI 1706 - AT - Income TaxDisallowance of corporate service charges paid to Associated Enterprises (AE) - Held that:- We restore the issue to the learned DRP for fresh adjudication keeping in view the directions of the Tribunal in the preceding assessment year. Thus, these grounds are allowed for statistical purposes. Disallowance of depreciation on intangibles such as material supply contracts, distribution network and brand usage - Held that:- As decided in assessee's own case after having considered the said arguments, the Tribunal followed the earlier decision of the Coordinate Bench of the Tribunal [2015 (9) TMI 286 - ITAT MUMBAI) and held that the impugned assets fall within the category of ‘business or commercial rights’ mentioned in section 32(1)(ii) of the Act. In our considered opinion, in view of the aforesaid precedents, we find no merit in the plea of the Ld. CIT-DR, which would require us to depart from the afore-stated precedents. Therefore, on this aspect the Revenue has to fail. Disallowance of expenditure u/s. 14A read with Rule 8D - Held that:- The fact that the assessee has not earned any exempt income by way of dividend or otherwise in the relevant previous year has not been controverted either by the Assessing Officer or by the DRP. Therefore, in the absence of any exempt income earned in the relevant previous year, no disallowance u/s. 14A read with Rule 8D could have been made. Thus, in view of the ratio laid down in the decisions cited by the learned counsel for the assessee, we delete the disallowance made by the Assessing Officer u/s. 14A read with Rule 8D. This ground is allowed.
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