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2018 (12) TMI 518 - AT - Income TaxTransfer pricing adjustment - addition towards Account of Management charges - Held that:- Following the order of the Hon’ble High Court in AYs 2005- 06 and 2006-07 and taking note of the Hon’ble jurisdictional High Court decision in assessee’s own case [2016 (2) TMI 406 - CALCUTTA HIGH COURT] the submission of the appellant that the adjustment of TPO towards Account of Management charges is arbitrary has been dealt by the First as well as the Second Appellate Authority and a concurrent finding of fact has been recorded that the TPO in principle accepted the remuneration model of 25% revenue sharing and the same has been substantiated and justified by the documents so submitted before the authorities below. Further, the genuineness of the documents which were relied on by the authorities have not been doubted by the Department. Thus, in view of the above, we do not find any illegality and infirmity in the orders and further we are of the opinion that a concurrent finding of fact on the basis of the documents on records was recorded by the First Appellate Authority as well as the Second Appellate Authority. Accordingly, no question of law arises out of the judgment rendered by the authorities below. Disallowance of software expenses - non business expenses - Held that:- Respectfully following the order of the Tribunal in AY 2005-06 [2015 (1) TMI 870 - ITAT KOLKATA] as well as taking note of the Hon’ble jurisdictional High Court decision in Indian Aluminium Co. ltd. Vs. CIT [2016 (3) TMI 691 - CALCUTTA HIGH COURT] wherein has held that software development expenditure which was application software was revenue in nature, and also the fact that the revenue has accepted the view of the Ld. CIT(A)/Tribunal on this issue, we confirm the action of the Ld. CIT(A) and dismiss this ground of appeal of revenue.
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