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TMI Blog2023 (11) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... l purposes. TP Adjustment of international transactions of payment of royalty to the AEs - HELD THAT:- We note that the issue is squarely covered by the decision of the Coordinate Benches wherein the issue of transfer pricing has been decided in favour of the assessee by deleting the adjustment to transfer price of the assessee with the AEs abroad. We have specifically perused the decision of the Coordinate Bench [ 2018 (6) TMI 1843 - ITAT KOLKATA] and find that the transfer pricing adjustment on account of royalty payment has been deleted. Accordingly, we direct the AO to delete the addition. Disallowance of leave encashment u/s 43B - assessee submitted before us that out of the said amount the assessee has paid on account of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO however, the same has not been given effect to by the AO, we direct the AO to give effect to and decide the same in terms of the DRP direction. Ground allowed for statistical purposes. Disallowance of interest income - difference in interest income as per books of accounts and as per Form 26AS - HELD THAT:- We are of the view that the issue needs to be examined at the level of the AO and accordingly, we restore the issue to the file of the AO with the direction to decide the same after providing sufficient opportunity to the assessee of being heard. Therefore, this ground is allowed for statistical purposes. Wrong calculation done by the AO of business loss available for set off - HELD THAT:- We are of the view that the issue n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deducted from the exporter for the purpose of determining the transfer price of the assessee in respect of international transactions of sale of goods with the Associated Enterprises (in short the 'AE'). 5. Ld. Counsel for the assessee stated that the Transfer Pricing Officer (in short Ld. 'TPO') in para 2.1 2.2 page 2 order passed u/s 92CA(3) of the Act that there was total excise duty of Rs. 42,34,67,906/- and it is apparent from the segmental accounts of the AE that the said excise duly has been allocated to the to third party segment only whereas sale of products/goods to the AE account for 1.80% of the total sales of the assessee and hence, component of excise duty has to be allocated on the basis of sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case for the AY 2010-11, 2011-12, 2012-13 2013-14 wherein the said issue has been decided in favour of the assessee qua the transfer price adjustment. Accordingly, Ld. A/R submitted that the ground may be allowed in view of the decisions of the Coordinate Benches as stated above. 9. Ld. D/R fairly agreed to the contention of the Counsel for the assessee. 10. After perusing the orders of the Hon'ble Coordinate Benches in the above said years, we note that the issue is squarely covered by the decision of the Coordinate Benches wherein the issue of transfer pricing has been decided in favour of the assessee by deleting the adjustment to transfer price of the assessee with the AEs abroad. We have specifically perused the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,389/- was paid towards the existing liability which has to be allowed under the provisions of Section 43B of the Act and accordingly, Ld. A/R referred to the tax audit report to corroborate his submissions. Ld. A/R prayed that the issue may be restored to the file of the AO with the specific direction to allow the deduction in respect of the leave encashment paid during the year. 12. Ld. D/R on the other hand, stated that the AO may be directed to examine this issue and decide accordingly. 13. After considering the facts on record, we note that during the year the assessee has made certain payments in respect of leave encashment which was stated to be Rs. 63,13,289/- which apparently has to be allowed to the assessee on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een decided by the Coordinate Bench in favour of the assessee as stated herein above. Accordingly, we direct the AO to allow the deduction in respect of club expenses. Therefore, ground no. 7 raised by the assessee is allowed. 16. Ground no. 8 is not pressed, therefore, is dismissed as not pressed. 17. The issue raised in ground nos. 9 10 is against the disallowance of commission expenditure amounting to Rs. 1,93,98,230/- u/s 69C of the Act. Ld. Counsel for the assessee at the outset, submitted that though the issue has been decided in favour of the assessee by the DRPby giving a specific direction. The A/R while referring to page nos. 19 20 submitted that though the DRP has given specific direction to the AO however, the same has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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