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2018 (11) TMI 554 - AT - Income TaxTPA - determining of the arms length price of the management services - Held that:- As perused the orders of the lower authorities and the APA, dated 07.05.2018. We find that the APA covers the year under consideration i.e previous year 2009-10 on the issue of determining of the arms length price of the management services availed by the assessee from its foreign AE during the year. As agreed upon amongst the authorised representatives of both the parties the present appeal of the revenue is treated as withdrawn, subject to verification of the facts on the part of the A.O. Depreciation on the market research expenses - Held that:- In the course of the proceedings before the DRP the assessee had sought depreciation on the written down value of the market research expenses. As submitted by the assessee before the DRP that in the immediately preceding year i.e A.Y 2009-10 depreciation was allowed on the amount of the market research expenses of ₹ 23,50,000/- by treating the same as a capital asset. We find that the DRP observed that the claim of the assessee that it was allowed depreciation on the market research expenses in A.Y 2009-10 was in order. As DRP had directed the A.O to grant depreciation to the assessee on the market research expenses, after making necessary verifications on facts. However, we find that the A.O while framing the assessment had omitted to give effect to the aforesaid direction of the DRP. We thus, in terms of our aforesaid observations restore the issue as regards grant of depreciation on the market research expenses to the file of the A.O, for giving effect to the direction of the DRP in the said context. - Decided in favour of assessee for statistical purposes.
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