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2020 (8) TMI 172 - AT - Income TaxTP Adjustment - ALP of the payment has been determined by using CUP as a method for benchmarking and for this purpose, the price of a similar software module licensed by Oracle Corporation was used as a comparable uncontrolled price - HELD THAT:- We notice that the TPO/AO has arrived at the ALP by not adopting any of the methods prescribed u/s 92C of the Act in respect of (i) payment of license fees for time and billing software, (ii) payment of regional administration and regional co-ordination cost allocation and (iii) payment of information technology cost allocation. In view of the above factual scenario, we are of the considered view that the ratio laid down by the Hon’ble Bombay High Court in Lever India Exports Ltd.; Merck Ltd. [2017 (2) TMI 120 - BOMBAY HIGH COURT], Johnson & Johnson Ltd. and Kodak India Pvt .Ltd. [2017 (4) TMI 1281 - BOMBAY HIGH COURT] is squarely applicable to the facts of the case. Therefore, following the same, we allow the 1st, 2nd and 3rd ground of appeal. Adjustment on account of late recovery of expenses from AEs - HELD THAT:- We are of the considered view that there is merit in the above contentions of the Ld. counsel. Having considered the facts as apparent from record, we restore the matter to the file of the AO/TPO to decide the above issue as per the stand of the Department in subsequent years i.e. from AY 2009-10 onwards. Disallowance of foreign travel expenses - HELD THAT:- Admittedly, in the instant case, these expenses have been incurred in connection with the spouses of the employees who accompanied them to the Worldwide Officers Meet. As recorded by the AO, the appellant has failed to produce any supporting evidence to justify its claim of business expediency. As no supporting evidence has been filed before us, we confirm the disallowance.
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