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2020 (12) TMI 719 - AT - Income TaxTP Adjustment - AO while framing the assessment made a reference under Sec. 92CA(1) to the TPO for determining the ALP of the international transactions of the assessee for the year under consideration - selection of MAM - HELD THAT:- We are unable to sustain the determination of the ALP of the regional management services received by the assessee from its AE, viz. Henkel AG & Company, KGaA, at Rs. nil by the TPO without resorting to any transfer pricing exercise as per any of the method prescribed in Sec.92C(1) of the Act, as against that determined by the assessee by adopting TNMM as the most appropriate method. We thus in terms of our aforesaid deliberations vacate the addition towards TP adjustment made by the AO/TPO. The Grounds of appeal No. 1 to 8 are allowed in terms of our aforesaid observations. Disallowance of professional charges - Allowable business expenses u/s 37 - HELD THAT:- Claim of the assessee before the lower authorities, as well before us, that as the aforesaid legal and professional fees incurred by it was neither in the nature of a capital expenditure nor of a personal nature, therefore, the same having been incurred wholly and exclusively for the purpose of its business was allowable as a revenue expenditure under Sec. 37 - assessee except for raising the aforesaid hollow contention had absolutely failed to substantiate its claim of having incurred the aforesaid expenditure in the course of its business. Except for placing on record the bifurcated details of professional charges incurred during the year under consideration, we find that, the assessee had failed to place on record any such material which would substantiate its claim of having incurred the so called professional charges wholly and exclusively for the purpose of its business. Accordingly, in the absence of any supporting documentary evidence which would justify the aforesaid claim of expenditure so raised by the assessee, we find no infirmity in the view taken by the A.O/DRP who in our opinion had rightly disallowed the same. - Decided against assessee. Deduction of sales promotion expenditure on account of travel under taken by its employees for attending a conference - HELD THAT:- We find, that the impugned amount as claimed to have been paid by the assessee to M/s Cox and Kings Ltd. towards travel expenses by Air of its employees for the purpose of attending a conference. Except for harping on the aforesaid unsubstantiated details the assessee had failed to place on record any such material which would substantiate its claim that the aforesaid expenses were actually incurred in the course of its business towards travel expenses of its employees for attending a conference. Accordingly, in the absence of any material supporting the claim of the assessee of having incurred the aforesaid expenses wholly and exclusively in the course of its business, we find no infirmity in the view taken by the lower authorities who had rightly rejected the same. We thus uphold the disallowance carried out by the AO. - Decided against assessee. Claim for deduction of sales promotion expenses - Expenses incurred towards purchase of gold coins etc. which are stated to have been distributed as gifts to clients in the normal course of its business - HELD THAT:- A.O in the absence of any supporting documentary evidence which would establish the factum of incurring of the aforesaid expenses by the assessee in the course of its business, had thus, disallowed the same. Before us, the assessee except for placing on record the bifurcated details of the gifts which are stated to have been given to certain persons, had however, failed to place on record any such material which could fortify its claim of having incurred the said expenditure wholly and exclusively for the purpose of its business. Accordingly, in the absence of any material having been placed on record by the assessee which would persuade us to dislodge the view taken by the A.O, we thus, finding no infirmity in the view therein taken by him uphold the disallowance - Decided against assessee.
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