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2022 (1) TMI 1082 - AT - Income TaxTP Adjustment - adjustment of AMP - international transaction or not? - case of the assessee has been that the primary engagement of the assessee is in manufacturing operations and the AMP expenditure incurred by it is to the benefit of its operations in India - HELD THAT:- The alleged excessive AMP expenditure does not fall in the category of international transaction and therefore the adjustment made by the Revenue on account of incurrence of AMP expenses is not sustainable in law, and set aside the orders of the authorities below. We, however, in consonance with the view taken by the Tribunal in assessee’s own case for the assessment year 2011-12, as in the Hon’ble jurisdictional High Court [2018 (12) TMI 1852 - ITAT DELHI], restore the matter to the file of the learned Assessing Officer to act in accordance to be given in the pending matters. We accordingly, allow ground No. 2 of assessee’s appeal. Disallowance of professional fees on account of short deduction of TDS - HELD THAT:- This issue is no longer res integra and squarely covered by the decision in the case of CIT vs. M/s SK Tekriwal .[2012 (12) TMI 873 - CALCUTTA HIGH COURT] and also the decision of PV Rajagopal [1998 (4) TMI 127 - ANDHRA PRADESH HIGH COURT] as held that section 201 has 2 limbs – one is that where the employer does not deduct the tax and the 2nd is where after deducting the tax fails to remit it to the government and there cannot be assumption that if there is any shortfall due to any difference of opinion as to the taxability of any item the employer can be declared to be an assessee in default. In view of this settled position of law we allow the ground of appeal. Disallowance of provision of stamp duty - HELD THAT:- The assessee incurred the stamp duty expenditure in respect of the instrument for 3 years, learned Assessing Officer was of the opinion that for each year of the 3 years, assessee is entitled only for 1/3rd of such an expense and on that premise, disallowed 2/3rd of the stamp duty. Ld. CIT(A) recorded a finding that in order to secure expenditure to be deferred Revenue expenditure, such an expense must result in a benefit in Revenue field and inasmuch as by incurring the stamp duty, the assessee does not get any enduring benefit of creation of a capital asset so as to have any enhanced income. We agree with this finding of the Ld. CIT(A) and dismiss this ground of appeal.
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