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2020 (8) TMI 50 - AT - Income TaxTP Adjustment - comparable selection - benefit of APA proceedings - HELD THAT:- We find that the additional ground of appeal raised by the assessee is to be admitted being a legal issue. Various Benches of the Tribunal have held that the conclusion reached in APA proceedings deserves to be applied in case facts and circumstances, FAR are similar to the subsequent years. Similar view has been applied in the case of Pune Bench of the Tribunal in M/S. Honeywell Automation India Ltd. vs ACIT [2018 (11) TMI 264 - ITAT PUNE] Once the APA has been concluded in the hands of the assessee then the same approach/basis is to be adopted for instant Assessment Year. Accordingly, the Assessing Officer/TPO is directed to follow the approach/basis of APA applied for the subsequent year to the instant Assessment Year. Disallowance of depreciation on Goodwill claimed by the assessee pursuant to the Business Transfer Agreement - HELD THAT:- The present Assessment Year being the year in which agreement was entered into i.e. dated 20.06.2008, it is considered fit to remit this issue of determining resultant amount of goodwill on which depreciation is allowable in the hands of the assessee, consequent to the terms and conditions of the Business Transfer Agreement, back to the file of AO. AO is directed to verify the claim of the assessee after allowing reasonable opportunity of hearing. The assessee is also directed to produce all the facts before the Assessing Officer, who shall decide the same in accordance with law. Disallowance of Mark to Market foreign exchange loss - HELD THAT:- We reverse the orders of Assessing Officer and direct the Assessing Officer to delete the disallowance made on account of mark to market foreign exchange loss. Disallowance of subscription charges - HELD THAT:- Amount was treated as donation by Assessing Officer and disallowed u/s 37(1) of the Act and the final assessment order was passed. We find no merit in the plea of the assessee where the amount is paid as donation to society. The assessee has enclosed the receipt and at best the assessee is entitled to claim deduction u/s 80G of the Act. The Assessing Officer may verify the same and allow the claim in accordance with law.
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