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2022 (1) TMI 1030 - AT - Income TaxTP Adjustment towards brand development services - adopting Spearman’s Rank Correlation method HELD THAT:- An identical issue has been considered by Tribunal in assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] wherein the Tribunal following the earlier decision in assessee’s own case for assessment year 2013-14 [2021 (9) TMI 1013 - ITAT CHENNAI] held that learned TPO as well as learned DRP were erred in making transfer pricing adjustments towards brand services by adopting Spearman’s Rank Correlation method and concluded that there is positive accretion between brand value and market capitalization of HMC Korea and hence, directed the AO/TPO to delete transfer pricing adjustment made towards brand development services. Therefore, consistent with the view taken by the coordinate Bench, we direct the AO to delete addition made towards brand fee adjustment. Disallowances u/s.14A r.w.r 8D - HELD THAT:- An identical issue has been considered by Tribunal in assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] wherein the Tribunal following the earlier decision in assessee’s own case for assessment year 2013-14 [2021 (9) TMI 1013 - ITAT CHENNAI] directed the AO to restrict disallowances u/s.14A of the Act, to the extent of exempt income earned for the impugned assessment year. Disallowance of depreciation on capital subsidy - HELD THAT:- An identical issue has been considered by Tribunal in assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] wherein the Tribunal following the earlier decision in assessee’s own case for assessment year 2013-14 [2021 (9) TMI 1013 - ITAT CHENNAI] has allowed claim of the assessee and the AO has accepted decision of the CIT(A) and deleted additions, while passing order giving effect to the order of the CIT(A). Therefore, consistent with the view taken by the coordinate Bench, we direct the AO to delete addition made towards disallowance of depreciation on capital subsidy received from SIPCOT. Disallowance u/s.43B(c) in respect of performance incentive paid to employees - HELD THAT:- An identical issue has been considered by Tribunal in assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] wherein the Tribunal following the earlier decision in assessee’s own case for assessment year 2013-14 [2021 (9) TMI 1013 - ITAT CHENNAI] held that payment made to an employee which is in the nature of bonus or commission for services rendered is covered u/s. 36(1)(ii) of the Act, and thus, if such payment is not made on or before due date of filing of return of income u/s.139(1) of the Act, then same cannot be allowed as deduction, as per section 43B(c) of the Act. Deduction towards education and secondary education cess u/s.37(1) - HELD THAT:- In assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] wherein the Tribunal following the earlier decision in assessee’s own case for assessment year 2013-14 [2021 (9) TMI 1013 - ITAT CHENNAI] where the issue has been remanded back to the file of AO to consider the issue denovo on merits in accordance with law, set aside issue to the file of Assessing Officer. Facts being identical for the year under consideration, by following the decision of Tribunal in assessee’s own case for assessment year 2015-16, we set-aside the issue to file of the AO to re-examine the issue as per the directions given by the Tribunal. Addition towards VAT incentive received from Government of Tamil - HELD THAT:- In assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] issue has been remanded back to the file of AO to consider the issue denovo on merits in accordance with law, has set aside issue to the file of Assessing Officer. Facts being identical for the year under consideration, by following the decision of Tribunal in assessee’s own case for assessment year 2015-16, we set aside the issue to file of the AO and direct him to reconsider the issue in accordance with law. Amount received from Focus Market Scheme to be treated as capital in nature and exclude from total - HELD THAT:- In assessee’s own case for the assessment year 2015-16 [2021 (9) TMI 1070 - ITAT CHENNAI] held that duty credit scrips received from Govt. of India under Focus Market Scheme is revenue in nature. Thus we are of the considered view that subsidy received from Govt. of India under Focus Market scheme cannot be considered as capital in nature and hence, we reject ground taken by the assessee.
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