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2022 (3) TMI 714 - AT - Income TaxAdditional ground relating to DDT liability - additional ground in the appeal filed against the assessment order passed u/s 143(3) - Whether issue of DDT can be said to arise out of the impugned assessment order? - HELD THAT:- In the instant case, first of all, the DDT liability is not forming part of assessment order passed u/s 143(3) of the Act. Further, the liability u/s 115-O can be challenged under the clause “an order against the assessee where the assessee denies his liability to be assessed under this Act” mentioned in sec.246A(1)(a) as held by Hon’ble Supreme Court. The above said clause is a separate clause unconnected with the clause “any order of assessment under sub-section (3) of section 143”. Accordingly, we are of the view that the assessee cannot raise the additional ground relating to DDT liability in the present appeal. The assessee, if so advised, may prefer appeal in that regard before Ld CIT(A). Since the assessee had entertained bonafide belief that its grievance on DDT liability can be raised as additional ground before ITAT, it did not file appeal before Ld CIT(A). Accordingly, we direct the Ld CIT(A) to take a lenient view on the matter of condonation of delay, if the assessee prefers appeal before him on DDT liability of the year under consideration - we reject the additional ground raised by the assessee on DDT liability. Disallowance of information technology support services - A.O. has disallowed the claim of the assessee treating it as capital in nature - HELD THAT:- We notice that an identical issue came to be considered by the coordinate bench in the assessee’s own case in assessment year 2008-09 [2020 (3) TMI 1195 - ITAT BANGALORE] and the addition made in that year was deleted as held that Assessee had acquired no right or interest whatsoever in the EDA tools and had only a right to use the software. It is not the case of the revenue that the EDA tools was not connected to the business of the Assessee. In such circumstances, we are of the view that the deduction was rightly allowed by the CIT(A) as revenue expenditure. Addition u/s 40(a)(ia) - Disallowance of lease rentals paid on car taken under financial lease - HELD THAT:- We notice that an identical issue has been decided in favour of the assessee by the Hon’ble High Court of Karnataka in the assessee’s own case in assessment year 2008-09 holding that there is no deduction required to be made either under Section 194-C or under Section 194-I of the Act in respect of the payments made to the lease financial company on the lease financial amounts paid to such company by the assessee. Therefore, there is no violation of the said provisions and Section 40(a)(i)/(ia) is not attracted to the present case. TPA Adjustment - exclusion of two comparable companies namely M/s. Asian Business Exhibition & Conferences Ltd. and M/s. ICC International Agencies Ltd. in determining ALP of marketing support services segment - HELD THAT:- We notice that both these comparables have been held to be not good comparables in the case of Electronics for Imaging India Pvt. Ltd. [2017 (7) TMI 1335 - ITAT BANGALORE] - Accordingly, following the above said decision, we confirm the exclusion of both the companies.
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