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2015 (5) TMI 398 - ITAT DELHITransfer pricing adjustment - DRP holding that the internal comparability does not provide meaningful benchmarking - Held that:- - As decided in assessee’s own case for the earlier assessment year [2014 (8) TMI 64 - ITAT DELHI], it has been held that the assessee was justified in undertaking internal bench marking analysis on standalone basis by placing on record working of operating profit margin from international transactions with AEs and transactions with unrelated parties undertaken in similar functional and economic scenario, and the same should be the basis for determination of arm’s length price in respect of international transactions undertaken with the associated enterprise - the matter is remitted back to the AO for fresh adjudication and for the purpose of determining the arm’s length price in respect of the international transactions undertaken with the associated enterprise by making internal comparison of profitability form the international transactions with associated enterprise and profitability from the international transactions with unrelated parties after allocating respective revenues and expenses to both the segments – Decided in favour of Assessee by way of remand. Deduction u/s 10A - disallowance of miscellaneous income considering the same as part of business income - Held that:- As relying on assessee's own case [2014 (8) TMI 64 - ITAT DELHI] the amount received by the assessee towards notice period is to be treated as income derived from the eligible undertaking and deduction u/s 10A shall be allowed accordingly. The Assessing Officer shall modify the assessment order in the light of the aforesaid direction and allow the deduction u/s 10A of the Act in terms of this order - Decided in favour of assessee. Adhoc disallowance of interest expenses - Held that:- As decided in assessee’s own case [ 2014 (8) TMI 64 - ITAT DELHI] interest expenditure on the utilization of borrowed funds for the acquisition of new assets, from the date of its acquisition till the date when the asset is put to use, is to be disallowed - the interest paid on the capital borrowed for acquisition of an asset for extension of existing business, shall not be allowed as deduction, from the date on which the capital was borrowed for acquisition of the asset till the date on which the asset was first put to use - no efforts has been done by the AO to find out the date on which the assessee borrowed the fund for acquisition of asset in the relevant AY and we also find that no attempt has been made by the AO to find out on which date the asset thus procured with the said borrowed fund have been put to use - Only after the dates has been found out then only one can compute the disallowance as prescribed by the proviso to section 36(1)(ii) of the Act – thus, the matter is remitted back to the AO with a direction to AO to find out the date on which the assessee borrowed the fund for acquisition of asset and also to find out on which date the asset for extension of business thus procured has been put to use - Decided in favour of assessee for statistical purposes.
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