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2020 (8) TMI 748 - ITAT MUMBAIAssessment passed u/s 254 r.w.s 143(3) - Order in the name of Varian India Pvt. Ltd.- India Branch, an entity not in existence on the date of passing the order, on account of closure of the Branch and subsequent purchase of its assets and liabilities by Agilent Technologies India Private Limited - HELD THAT:- AO has made the assessment u/s 254 r.w.s. 143(3) in the name of “M/s Varian India Pvt. Ltd.-India Branch”. In the Form 35 filed before the CIT(A) dated 06.02.2015, the appellant has clearly stated the name of “M/s Varian India Pvt. Ltd.-India Branch”. In the grounds of appeal and statement of facts filed before the CIT(A), the assessee has clearly stated the name of “M/s Varian India Pvt. Ltd.-India Branch”. Therefore, there is no merit in the 1st ground of appeal and the same is dismissed. TP Adjsutment - Commission income on the reimbursement of expenses received by the Appellant from its Associated Enterprises - HELD THAT:- In the instant case, the appellant has credited in its financial statements towards reimbursement of expenses and offered the same to tax in the return of income filed for the year under consideration. Appellant has debited its financial accounts with expenses incurred on behalf of VGCs and subsequently, on receipt of the credit note from VGCs, it credited the same under the head “Other Income” in its financial accounts. There is merit in the treatment of the appellant that as the same was in the nature of reimbursement, the same was not included for the purpose of calculation of commission. Appellant has rightly computed its commission income as per the said DR agreements. Therefore, we set aside the order of the Ld. CIT(A) and delete the addition of commission income amounting on the reimbursement of expenses received by the appellant from its AEs. Thus the 2nd ground of appeal is allowed.
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