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2021 (8) TMI 629 - AT - Income TaxTP Adjustment - international transaction of allowing credit period to the AE - HELD THAT:- A.Y. 2014-15 is covered under roll-back period of the APA. Also, the FAR for all the years covered under APA is same. Hence, the period of realization of 60 days which is agreed in the APA for 01 April 2017 onwards should be considered for A.Y. 2014-15 as well. The principle laid down in the decisions referred to in paragraph 10 of this order will apply to the present case also. We hold and direct accordingly. Deduction u/s 10AA - Deduction u/s 12AA - communication and travelling expenses - HELD THAT:- We are of the view that it would be just and appropriate to direct the AO to consider the claim of the assessee regarding software expenses in the light of the invoices admitted as additional evidence by us. To the extent that the software expenditure is in the nature of payment of licence fee for a period of less than 1 year, the same could not be regarded as a capital expenditure and should be allowed as a deduction as was directed by the DRP in its directions dated 06.09.2018. As far as the grant of foreign tax credit projected of the grounds of appeal raised by the assessee is concerned, we admit the withholding tax certificate evidencing payment of tax in foreign country and direct the AO to give credit to such taxes in accordance with law as mentioned in section 90 of the Act, after affording assessee opportunity of being heard. The AO is also directed to exclude communication and travelling expenses from the total turnover while computing eligible deduction under section 12AA of the Act. Thus, the relevant grounds of appeal of the assessee are treated as allowed for statistical purposes. Levy of interest under section 234A - assessee had filed the return of income within the due date prescribed - AO is directed to examine the claim of the assessee in this regard, after affording opportunity of being heard. Levy of interest under section 234B is purely consequential ground with regard to initiation of penalty proceedings u/s 271(1)(c) of the Act is not appealable.
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