9911796707
TMI Blog2012 (8) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... essee s appeal against directions of the Dispute Resolution Panel-II, New Delhi dated 26-09-2011 U/s 144C(5) of the Income-tax Act, 1961, relating to A.Y. 2007-08. 2. Ground nos. 1 to 4 raise a ground of transfer pricing and ground nos. 7, 8 9 are pleaded to be consequential in nature. The summarized grounds for adjudication are as under: A. That the DRP has committed gross errors when it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned Assessing Officer /DRP has erred in disallowing expenses amounting Rs. 293,379 on account of non deduction of TDS by the Assessee company on the traveling expenses reimbursed to Luxottica S.r.L Italy. 3. Apropos T.P. adjustment, learned counsel for the assessee made detailed arguments which in fine contend that: 3.1. The impugned TP adjustment was made on the ground that the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motion of brand. It has been ignored that these expenses have been incurred only for promotion of the products and benefit, if any, to the brand name RayBan is only incidental in nature. 3.3. Even if it is assumed that the assessee is to be recharacterized as a limited risk distributor/ agent, even then the assessee had earned arm s length return of a limited risk distributor along with remuner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expense. Assessee has not transferred any disproportionate profits at entity level. However, learned counsel for the assessee fairly conceded that the agreement about the arrangement of advertisement expenses by various entities of the subsidiary concerns was not produced before Assessing Officer or TPO as they were not asked for. In this eventuality, it is pleaded that the issue may be set aside, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation, by various rulings computer UPS has been held to be integral part of the computer system eligible for depreciation @ 60%. This ground of the assessee is allowed. 7. Apropos third ground, it is pleaded that the amount was reimbursed to Luxottica S.r.L Italy. There is no prescription of TDS on reimbursement of expenses incurred. In view of these facts, this ground of the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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