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2020 (4) TMI 91 - AT - Income TaxTransfer pricing adjustment on account of AMP expenses - HELD THAT:- According to the Rule, under the PSM, combined net profit of the AEs arising from the international transaction has to be determined and thereafter, if incurrence of AMP expenses is to be considered from the value of such international transaction then the combined profit has to be determined from the value of such international transaction. No FAR analysis of AE has been carried out or even demonstrated that any kind of profit has been derived by the AE from the AMP expenses incurred in India. Otherwise also, the profit earned on account of AMP expenses incurred by the assessee by way of economic exploitation of the trademark/brand in India already stands captured in the profit and loss account for the assessee company and the same has duly offered to tax and hence there was no logic to compute or make any Transfer Pricing Adjustment on this score. As rightly observed by the Ld. DRP in its order these issues are covered in assessee’s own case for the assessment year 2006-07 to 2013-14 [2018 (12) TMI 277 - ITAT DELHI] Subsidy from the Government of West Bengal received for setting up for a new project in West Bengal under the West Bengal incentive scheme 2000 and 2004 - Revenue or capital receipt - HELD THAT:- As decided in own case [2018 (12) TMI 277 - ITAT DELHI] merely because here in this case the quantification of subsidy was based on reimbursement of sales tax, it does not meant that it is a revenue receipt. This view now is well supported by the various decisions as noted above that character of subsidy in the hands of the assessee is the determinative factor having regard to the purpose for which subsidy was given. Accordingly, we hold that the subsidy received by the assessee from the subsidy received under the West Bengal Incentive Scheme of 2004 is capital in nature and cannot be taxed as revenue receipts. Thus, this issue is decided in favour of the assessee. Credit of TDS - assessee agitates that the actual credit of tax deducted at source to the tune of ₹ 5,31,70,455/-as claimed in the return of income for the assessment year 2015-16 should have been allowed, is a matter of verification and direct the Assessing Officer to verify the actual credit of tax deducted at source and allow the same - HELD THAT:- We do not find any justification to sustain the additions made by the learned Assessing Officer. We therefore, set aside the findings of the Ld. DRP and direct the Assessing Officer to delete the impugned additions.
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