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2019 (1) TMI 1467 - AT - Income TaxTPA - aggregation/segregation of two segments - purchase of software segment was not merged with the software development segment - Held that - This is the first time that the TPO has taken a different view from the earlier Assessment Years as well as subsequent Assessment Years by aggregating Software Trading Segment with Software Development Segment but while doing so there was no finding as to why these two segments has been aggregated/merged/clubbed by the TPO. Therefore it will be appropriate to remand back this issue to the file of TPO/A.O. to decide the same afresh by taking into account FAR analysis given by the assessee in TP Study as well as principle of consistency. Therefore Ground is partly allowed for statistical purpose. Since this issue is remanded back the subsequent grounds which were raised by the assessee in respect of Transfer Pricing Adjustment will also be decided by the TPO/A.O. according to the decision of aggregation/segregation of these two segments. Therefore Ground Nos. 1 to 13 are partly allowed for statistical purpose. Adjustment on account of advance billing to be allowed in favour of the assessee by the decision of the Co-ordinate Bench in asessee s own case for Assessment Years 2008-09 & 2007-08. Adjustment on account of business promotion and conference - Held that - These business promotion expenses were incurred wholly and exclusively for the purpose of business and were necessitated in view of commercial exigency and are earned year on year. Hence the Ld. AR prayed that the same may be allowed as business expenses u/s 37 - issue is covered in favour of the assessee in assessee s own case for Assessment Year 2009-10.
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