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2020 (9) TMI 1047 - AT - Income TaxRe-characterization of ‘distribution fee’ paid/payable by the assessee to its AE as ‘Royalty’ - HELD THAT:- Departmental Representative could not bring any material on record to show that the facts in the assessment year under appeal are distinguishable or any judgment to controvert the findings of the Tribunal. We see no reason to take a divergent view. Thus, following the order of Co-ordinate Bench [2020 (7) TMI 494 - ITAT MUMBAI] we hold that the ‘distribution fee’ paid by the assessee is not in the nature of ‘Royalty’. Benchmarking of international transaction of alleged ‘Royalty’ payment by applying CUP as the most appropriate method - HELD THAT:- Since, we have held that ‘distribution fee’ paid/payable by the assessee is not in the nature of ‘Royalty’, the grievance of assessee in ground no. 9 to 11 does not survive Deduction of education and secondary and higher education cess paid on the income-tax liability under the head “profits and gains from business or profession” - Admission of additional ground - HELD THAT:- The additional ground raised by the assessee is purely of legal nature. Taking into consideration the facts and the decision rendered in the case of Sesa Goa Ltd.[2020 (3) TMI 347 - BOMBAY HIGH COURT] we admit the additional ground and restore the issue to the file of Assessing Officer for consideration. The Assessing Officer shall afford reasonable opportunity of hearing to the assessee and shall pass speaking order, in accordance with law. The additional ground raised by the assessee is thus, allowed for statistical purpose. Short grant of TDS credit while computing tax liability in the impugned assessment year - charging of interest under section 234A - assessee has filed rectification petition under section 154 - HELD THAT:- The Assessing Officer is directed to decide the aforesaid application filed by the assessee, in accordance with law by passing a speaking order within a period of three months from the date of receipt of this order. Levy of interest under section 234B and 234D is mandatory and consequential, hence, aforesaid grounds raised by the assessee are dismissed, sans-merit.
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