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2021 (11) TMI 570 - AT - Income TaxTP Adjustment - payment of export commission on payment of royalty on export to associated enterprises - HELD THAT:- As respectfully following the decision of the coordinate bench in assessee’s own case for assessment year 2015 – 16 [2021 (5) TMI 949 - ITAT DELHI] we allow ground number 5 of the appeal and thereby direct the learned transfer pricing officer/learned assessing officer to delete the adjustment on account of the arm’s-length price of the export commission payment Disallowance of expenditure of signage - HELD THAT:- As respectfully following the decision of the coordinate bench in assessee’s own case [2021 (5) TMI 949 - ITAT DELHI] we also hold that signage expenditure is revenue in nature. Accordingly the disallowance is deleted and ground number 7 of the appeal of the assessee is allowed. Disallowance of the sales tool expenses - HELD THAT:- As respectfully following the decision of the coordinate bench in assessee’s own case for assessment year 2015 – 16 [2021 (5) TMI 949 - ITAT DELHI] we also hold that sales tool expenditure are revenue expenditure in nature and therefore the disallowance made by the learned assessing officer is directed to be deleted. Accordingly, ground number 8 of the appeal is allowed Sales tool expenditure are revenue expenditure in nature and therefore the disallowance is directed to be deleted. Accordingly, ground number 8 of the appeal is allowed. Capitalization of the royalty expenses - HELD THAT:- Assessee was already engaged in the manufacturing of motorcycle and Scooter and payment of royalty expenses was not with respect to setting up of manufacturing facility. Therefore we also allow ground of the appeal of the assessee and direct the learned AO to delete the addition on account of capitalisation of royalty expenses holding it to be revenue in nature. Deduction/expenditure in respect of primary educational cess and higher and secondary education cess paid - HELD THAT:- All the arguments has allowed the claim of the assessee - we direct the ld AO to allow assessee the deduction of cess u/s 37 (1) of the act. Accordingly, additional ground of appeal is allowed.
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