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2020 (7) TMI 494 - AT - Income TaxCharacterization of distribution fee i.e. Royalty or not? - HELD THAT:- In assessee’s own case for AY 2011-12 on the issue held that the distribution fee paid by the assessee to its AE is not ‘Royalty’. Comparable selection - Considering the facts that the Avance and Sonata were accepted as valid comparable in assessee’s own case in AY 2011-12 [2020 (3) TMI 781 - ITAT MUMBAI]and Trijel and Integra was held as valid comparable with channel distribution, therefore, we in principal agree and accept the submission of ld. AR of the assessee to accept these four comparable as comparable with assessee. However, we have seen that the TPO rejected the comparability of these comparable summarily, without examining their segmental data, hence we direct the AO/TPO to verify the segmental data of these four comparable for the relevant financial years as per Rule 10B(4) and recompute the TP adjustment afresh and allow appropriate relief to the assessee. The assessee is also directed to provide all necessary information and evidence to the TPO/AO. Needless to order that before passing the order, the TPO/Assessing Officer shall grant opportunity to the assessee. In the result, the grounds related to comparability of comparable are allowed in accordance with the aforesaid directions. Short deduction of TDS - HELD THAT:- Considering the submissions of the ld. AR for the assessee the assessing officer is directed to verify the TDS details and grant appropriate relief to the assessee after verifying the details as early as possible. Deduction of education secondary and higher education cess - admitting the additional ground of appeal - HELD THAT:- gone through the copy of income tax return furnished by the assessee and the assessment order passed by the assessing officer and the working of income tax calculated and rectified by assessing officer. Considering the facts and circumstances of the case and the submissions of ld representatives of the parties that no additional facts are required to the brought on record and the necessary facts for adjudicating the additional grounds of appeal are already available on record, we admits the additional ground of appeal. Considering the facts that the assessee has raised the additional ground for the first time before the Tribunal, therefore, we direct the assessing officer to verify the facts and pass the order afresh on this issue (claim), after considering the decision SESA GOA LIMITED, VERSUS THE JOINT COMMISSIONER OF INCOME-TAX, RANGE 1, PANAJI GOA. [2020 (3) TMI 347 - BOMBAY HIGH COURT]
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