ITAT Annual Digest [Part 62]

This annual digest analyzes all the ITAT stories published in 2023 at taxscan.in ITAT deletes TP Adjustment by TPO towards Payment of Royalty on Technology paid to Cadbury Adams USA LLC, and Cadbury Enterprises Pte Ltd M/s Mondelez India Foods Private Ltd vs Asst.Commissioner of Income-tax CITATION: 2023 TAXSCAN (ITAT) 2294 The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the Transfer Pricing (TP) adjustment by the Transfer Pricing Officer (TPO) towards the payment of royalty on technology paid to the Cadbury Adams USA LLC, and Cadbury Enterprises Pte Ltd. The two-member Bench of Vikas Awasthy (Judicial Member) and Padmavathy S. (Accountant Member) observed that the co-ordinate bench in assessee’s own case for A.Y. 2009-10 (supra) had considered the issue of payment of royalty on technology to Cadbury Adams USA LLC, to Cadbury Enterprises Pte Ltd and Cadbury Schweppes Asia

Pacific Pte Limited (now merged with Cadbury Enterprises Pte Ltd). The Bench held that the payment of royalty to Cadbury Adams USA (CAUSA) was at arm‟s length holding that the royalty payment on trademark usage was within the arms‟ length and did not call for any adjustment. The Bench further noticed that the payment of royalty towards trademark for the year under consideration was based on the same agreement, which was considered by the co-ordinate bench for the assessment year 2009-10 and directed delete the TP adjustment made by the TPO towards payment of royalty on technology paid to Cadbury Adams USA LLC, and Cadbury Enterprises Pte Ltd. Value of Property assessed by SVA on date of Agreement to Sale shall be taken for computing full value of consideration for Transfer u/s 50C: ITAT

Deputy Commissioner of Income Tax vs Nitin Gupta CITATION: 2023 TAXSCAN (ITAT) 2316 The Raipur bench of the Income Tax Appellate Tribunal (ITAT) held that the value of the property assessed by the stamp valuation authority (SVA) on the date of agreement to sale shall be taken for computing the full value of the consideration for transfer under Section 50C of the Income Tax Act, 1961. The Two-member bench comprising of Ravish Sood (Judicial member) and Arun Khodpia (Accountant member) held that neither the “agreement to sell” dated 06.03.2014; nor the contents thereof had been doubted by the Assessing Officer in the course of the remand proceedings, therefore, as observed by the CIT(A), and rightly so, the value assessable by the stamp valuation authority on the date of the “agreement to sell” i.e. 06.03.2014 was to be taken for computing full value of consideration for such transfer under Section 50C of the Income Tax Act.

Denial to Claim of Deduction on HRA u/s 10(13A) of Income Tax Act by considering Entire Salary Instead of Basic & DA: ITAT Remits matter to AO for Reconsideration Ravindra R.V. vs DCIT CITATION: 2023 TAXSCAN (ITAT) 2317 The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) held that the Commission of Income Tax (Appeals) [CIT(A)] adopted the entire salary instead of considering the Basic & DA while computing the benefit under Section 10(13A) of the Income Tax Act,1961 read with Rule 2A of the Income Tax Rules,1962, therefore remitted this issue to the file of Assessing Officer (AO) to re-examine the issue for the purpose of quantification of Housing Rent Allowance (HRA). The Bench comprising of Chandra Poojari, Accountant Member and MS. Madhumita Roy, Judicial Member observed that these details are not available in the return of income filed by the assessee along with Form No.16. It was further observed that the CIT(A) adopted the entire salary instead of considering the Basic & DA while computing the benefit under Section 10(13A) of the Income Tax Act read with Rule 2A of the Income Tax Rules. The Tribunal found it appropriate to remit this issue to the file of AO to re-examine the issue for the purpose of quantification of HRA on the basis of Form No.16 filed by the assessee before lower authorities. Accordingly, the issue in dispute is remitted to the file of AO for reconsideration so as to grant deduction towards HRA. Hence the appeal of the assessee was allowed for statistical purposes. ITAT directs AO to Share Information of Beneficiaries of Leading Kingpins Providing Bogus Long Term Capital Gains within 90 days Naresh Manakchand Jain vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2318 The Mumbai Bench of Income Tax Appellate

Tribunal (ITAT) has directed the Assessing Officer (AO) to share information of beneficiaries of leading kingpins providing bogus long term capital gains within 90 days. The two-member Bench of Prashant Maharishi, (Accountant Member) and Sandeep Singh Karhail,(Judicial Member) observed that the assessee had given names of (i) all the persons to whom the accommodation entries were provided, (ii) the persons who were working along with the assessee in the above money-laundering operation, (iii) names of directors of companies involved in this massive money laundering activities, (iv) and the rate of commission that he used to charge on the same Disallowance under Section 14A, cannot Exceed Exempt Income while Computing Income under Normal Provisions and Book Profit u/s 115JB of Income Tax Act: ITAT

ACIT vs M/s. Chalet Hotels Ltd CITATION: 2023 TAXSCAN (ITAT) 2319 The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the disallowance under Section 14A of the Income Tax Act 1961, could not exceed income while computing the income under normal provisions and book profit under Section 115JB of the Income Tax Act. The two-member Bench of Aby T. Varkey, (Judicial Member) and Om Prakash Kant, (Accountant Member) noted that the Revenue had raised similar contention in the case of ACIT vs K Raheja Corporate Services Pvt. Ltd. (2021). Rejecting the same, this Tribunal had held that the Explanation introduced in Section 14A of the Income Tax Act by the Finance Act 2022 had prospective application. Accordingly, it was held that, if during the relevant year, the assessee had not earned any tax-free income, disallowance of expenditure under Section 14A of the Income Tax Act was not permissible. ITAT Confirms Income Tax Addition u/s 68 in Absence of Evidence Proving Unsubstantial Increase in Business Capital Assistant Commissioner of Income-tax vs Pannalal Bhansali CITATION: 2023 TAXSCAN (ITAT) 2322 The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) confirms the Income Tax addition under Section 68 of the Income Tax Act, 1961 in the absence of evidence proving the unsubstantial increase in the

business capital. The Two-member bench comprising of Sanjay Garg (Judicial member) and Girish Agrawal (Accountant member) held that there are discrepancies and contradictions in the submission made by the assessee which, more importantly, has been for the first time furnished before the CIT(A). And the findings arrived at by CIT(A) on submissions made by the assessee, in no way demonstrate, the conduct of any enquiry either by himself or through the Assessing Officer while disposing of the appeal, granting relief to the assessee. Taking Separate Exemption for Claiming Contribution to Gratuity fund not needed as Approval Granted to Master Trust Applicable to Companies formed by Restructuring: ITAT Gujarat Urja Vikas Nigam Ltd vs CIT CITATION: 2023 TAXSCAN (ITAT) 2262 The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that taking separate exemption for claiming contribution to the gratuity fund was not needed as approval granted to master trust was applicable to companies formed by restructuring. The two-member Bench of Annapurna Gupta,

(Accountant Member) and Madhumita Roy, (Judicial Member), allowed this ground of appeal filed by the assessee holding that the Master Trust having been granted approval by the Commissioner, the initial restructuring of the GEB had brought out no change in the character or functioning of the Trust. Therefore, the requirement of entities, which were created on account of restructuring of GEB , seeking approval afresh of the Master Trust, was nothing but a mere but a mere technicality, and the assessee’s claim of contribution to this Trust could not be denied on account of not fulfilling this technical requirement technicality, and the assessee’s claim of contribution to this Trust could not be denied on account of not fulfilling this technical requirement. Cash Deposited in Bank Account as a result of Earlier Withdrawal can’t be treated as Undisclosed Income: ITAT M/s. Karan Realty Pvt. Ltd vs Income Tax Officer CITATION: 2023 TAXSCAN (ITAT) 2321 The

Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) held that the cash deposited in the bank account as a result of earlier withdrawal cannot be treated as unexplained/undisclosed income. The Two-member bench comprising of Waseem Ahmed (Accountant member) and T.R Senthil Kumar (Judicial member) held that the CIT(A) in his order has admitted that there was a cash withdrawal from the bank before depositing the same in the bank account of the assessee. None of the authorities below has pointed out that the cash withdrawn from the bank has been utilized by the assessee for any other purpose. Interest paid towards late Payment of TDS is not Compensatory in Nature: ITAT confirms disallowance u/s 37(1) of Income Tax Act M/s. Analogics Tech India Limited vs The Deputy Commissioner of Income Tax CITATION: 2023 TAXSCAN (ITAT) 2323 The Hyderabad bench of the Income Tax Appellate Tribunal (ITAT) confirmed the disallowances under Section 37(1) of the Income Tax Act, 1961 for the interest paid towards late payment of Tax Deducted at Source (TDS) is not compensatory in nature. The Two-member bench comprising of R.K. Panda (Vice-President) and Laliet Kumar (Judicial member) observed that there was no merit in the submission of the assessee as the assessee has not paid the contribution under ESI and PF Act within the time provided by the said Act. No real Rental Income received from litigation filed for recovery of arrears of Rent: ITAT deletes addition made on account notional Rental Income DCIT vs M/s JAH Developers Pvt. Ltd CITATION: 2023 TAXSCAN (ITAT) 2324 The Income Tax

Appellate Tribunal (ITAT) Delhi bench while deleting the addition made on account of notional Rental Income, observed that no real rental income received from litigation filed for recovery of arrears of the rent. After considering the facts submitted and circumstances, the two member bench of Dr. B.R.R. Kumar(Accountant Member) and Chandra Mohan Garg (Judicial Member) held that when no real rental income has been earned and received by the assessee, then no such income can be held as taxable in the hands of assessee on account of notional rental income under the head income from other sources. Relief to Jaypee Cement: ITAT deletes Penalty of Rs.132 Cr. imposed for Misreported Income due to mistake of Tax Auditor M/s. Jaypee Cement Corporation Ltd vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2325

The Income Tax Appellate Tribunal (ITAT) Delhi bench deleted the penalty of Rupees 132 crore imposed on Jaypee Cement for misreporting of income by the tax auditor in the tax return. After considering the facts and circumstance , the two member bench of M. Balaganesh (Accountant Member) and Saktijit Dey, (Vice President) observed that assessee‘s case would squarely fall under the exception provided under Section 270A(6)(a) of the Income Tax Act wherein, the assessee had given its bona fide explanation and had disclosed all the material facts that are relevant for the explanation offered. Therefore the bench deleted the penalty imposed by the assessing officer. Freight Inward charges were part and parcel of Purchase of Goods: ITAT deletes disallowance u/s 40(a)(ia) of Income Tax Act on non deduction of TDS

Kalpesh Ganpatlal Patel vs The ITO CITATION: 2023 TAXSCAN (ITAT) 2326 The Income Tax Appellate Tribunal (ITAT) Ahmedabad bench held that freight inward charges was part and parcel of the purchase of goods. Therefore, the bench deleted the disallowance made under Section 40(a)(ia) of the Income Tax Act, 1961 on non deduction of TDS. After considering the facts and circumstances, the two member bench of Waseem Ahmed (Accountant Member) and Suchitra Kamble (Judicial Member) deleted the disallowance made under Section 40(a)(ia) of the Income Tax Act. Addition for Deemed Dividend u/s 2(22)(e) of Income Tax Act Can Only be Made in the Hands of Shareholder: ITAT Apeejay Pvt. Ltd. vs D.C.I.T CITATION: 2023 TAXSCAN (ITAT) 2150 The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition for deemed dividend under Section 2(22) of the Income Tax Act,1961 could only be made in the hands of shareholders. The two-memeber Bench of Manish Borad, (Accountant Member) and Sonjoy Sarma, (Judicial Member) observed that, “Addition for deemed dividend can be made only in the hands of the shareholder of the lending company and since assessee is not a shareholder being a beneficial owner of shares holding not less than 10% of the voting power in the lending company, namely, Apeejay Tea Limited., Section 2(22)(e) of the Act cannot be invoked in the case of assessee in appeal before us.” Income by way of Statutory Contribution received from recognized Stock Exchange is eligible for exemption u/s 10 (23EC) of Income Tax Act: ITAT Income Tax Officer vs NCDEX Investor (Client)

Protection Fund Trust CITATION: 2023 TAXSCAN (ITAT) 2327 The Income Tax Appellate Tribunal (ITAT ) Mumbai bench held that income by way of statutory contribution received from the recognized stock exchange is eligible for exemption under Section 10 (23EC) of the Income Tax Act, 1961. After considering the facts submitted and circumstance , the two member bench of Prashant Maharishi (Accountant Member ) and Rahul Chaudhary,(Judicial Member) observed that income of the assessee with respect to contribution received from recognized stock exchange and the members thereof is eligible for exemption under section 10 (23EC) of the Income Tax Act. Tax evasion by way of Colourable Devices and Sham Transaction to defraud Department: ITAT dismisses assessee appeal Manoj Anand vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2329 The Income Tax Appellate Tribunal (ITAT) Panaji bench dismissed the appeal filed by the assessee and observed that the assessee has evaded tax by way of colourable devices and sham transactions to defraud the income tax department. After considering the facts submitted and circumstances, the two member bench of Dr. B.R.R. Kumar(Accountant Member) and Chandra Mohan

Garg (Judicial Member) held that assessee has evaded tax by way of colourable devices and sham transactions to defraud the income tax department. Interest Bearing Funds Not Applied for the Purpose of Making Investments: ITAT Deletes Disallowance u/s 14A r.w.r 8D(2)(ii) of Income Tax Rules Apeejay Pvt. Ltd. vs D.C.I.T CITATION: 2023 TAXSCAN (ITAT) 2150 The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) has deleted the disallowance made under Section 14A of the Income Tax Act 1961 read with Section 8D(2)(ii) of the Income Tax Rules 1962. The two-member Bench of Manish Borad, (Accountant Member) and Sonjoy Sarma, (Judicial Member) set aside the impugned order and deleted the disallowance made under Rule 8D(2)(ii) of Income Tax Rules for the impugned assessment years holding the admitted fact that there was no finding of the revenue authorities at any stage indicating specifically that interest bearing funds had been applied for the purpose of making investments. ITAT Deletes Addition u/s 69C of Income Tax Act made Solely on Basis of WhatsApp chat

Designers Point (India) P. Ltd. vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2328 The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted addition under Section 69C of the Income Tax Act made solely on the basis of WhatsApp chat. The two-member Bench of Chandra MO Han Garg, (Judicial Member) and B.R.R. Kumar, (Accountant Member) noted that there was no other evidence in the hands of AO supporting the factum of cash payment to said two employees and the Assessing Officer had proceeded to make addition on the basis of WhatsApp chats between Seema Dutta and Aman Sheghal and their statements only and no other documentary evidence or adverse positive material had been found and searched during the course of search and seizure operation. Notice Demanding Sales Tax issued after 3 Months Limitation u/s 86 of Finance Act when Assesee Prepared sale Tax Appeal: Kerala HC allows one Month to File Appeal KOLLAD SERVICE

CO-OPERATIVE BANK LTD vs THE DEPUTY COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE CITATION: 2023 TAXSCAN (HC) 1462 The Kerala High Court allowed one month time to file an appeal under sales tax as the notice demanding sales tax was issued after a three-month limitation under section 86 of the Finance Act, 1994 when the assessee prepared a sales tax appeal. Considering the circumstance the single judge bench comprising Justice Dinesh Kumar Singh petitioner was granted one month to file an appeal against the order. It was further held that “for one month from today, the impugned notice shall not be implemented.” Assessment Order passed without Proper Examination of Evidence shall be erroneous and prejudicial to Interest of Revenue: ITAT M/s. Balaji Builders vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2330 The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that the assessment order passed without proper examination of evidence shall be erroneous and prejudicial to the interest of the revenue. The Two-member bench

comprising of Manoj Kumar Aggarwal (Accountant member) and Manomohan Das (Judicial member) held that no fault could be found in the observation that the assessment was framed without making due enquiries. In such a case, the revision would be justified in terms of the decision of the Supreme Court in the case of Malabar Industrial Company Ltd. (243 ITR 83). Thus, the appeal was dismissed. Reopening of Assessment without Valid Jurisdiction: ITAT Dismisses Revenue Appeal DCIT vs M/s. Thulasi & Others CITATION: 2023 TAXSCAN (ITAT) 2331 The Chennai Bench of Income Tax Appellate Tribunal (ITAT) upheld the decision of Commissioner of Income Tax (Appeals) where the action of the Assessing Officer (AO) in assuming jurisdiction and in reopening the assessment and the consequent reassessment made under Section 144 read with Section 147 of the Income Tax Act, 1961 was held to be without valid jurisdiction and thus annulled. The Two Member Bench comprising of Mahavir Singh, Vice President and Manoj Kumar Aggarwal, Accountant Member observed that in the present case, the reassessment notice has been issued at old address and the assessment order is an ex-parte order. Further it was noted that reopening has been done merely at the behest of communication received from ACIT to reopen the case of the present assessee to tax short term capital gains while he had already reopened the assessment of payer assessee. The Tribunal observed that the AO has wrongly invoked the provision

of clause (a) of Explanation 2 of Section 147 of the Income Tax Act, which applies only where no return of income has been furnished by the assessee. However, in the case of the assessee, the return of income was filed and the scrutiny assessment under Section 143(3) of the Income Tax Act was completed by the jurisdictional AO accepting the returned Income of the assessee. Thus considering the facts and circumstances of the case the Tribunal found no reason to interfere in the impugned order of the CIT(A). Hence, the revenue’s appeal was dismissed. Partial Acceptance of Expenses claimed Implies Expenses are Related to Business Activities of Assessee : ITAT Deletes Disallowance on Vehicle, Telephone and Salary expenses Shri Ramku Raningbhai Patgir vs Dy. Commissioner of Income Tax CITATION: 2023 TAXSCAN (ITAT) 2334 The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) held that 1/3rd disallowance of the said expenses and accepted the remaining expenses implies partially admission that the assessee has incurred expenses for its own business, thus the Assessing Officer (AO) as well as the Commissioner of Income Tax (Appeals) [CIT(A)] was not justified in making the disallowance for the expenses which were claimed by the assessee. The Single Member Bench comprising of Ms. Suchitra Kamble, Judicial Member observed that the disallowance made by AO due to no documentary proof in support of expenses relating to salary and bonus paid to the employees, petrol expenses and usage of vehicles for personal and business purpose as well as expenses relating to telephone appears to be incorrect as the assessee has given

the details of expenses made by the assessee during the course of conducting the business. Further the Tribunal noted that the AO has disallowed 1/3rd of the said expenses and accepted the remaining expenses and, therefore partially admitted that the assessee has incurred expenses for its own business. The Bench held that the AO as well as the CIT(A) was not justified in making the disallowance for the expenses which were claimed by the assessee. Hence, appeal filed by assessee was allowed. Bonafide Mistake in Computing Income Tax is not Furnishing Inaccurate Particulars or Concealment of Income : ITAT Deletes Penalty u/s 271(1)(c)of Income Tax Act Sanjay Chandulal Upadhyay vs Income Tax Officer CITATION: 2023 TAXSCAN (ITAT) 2332 The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) held that the standard belief or mistake in computing income tax cannot be termed as furnishing of inaccurate particulars or concealment of income and thus deleted the penalty under Section 271(1)(c) of the Income Tax Act. The Single Member Bench comprising of Ms. Suchitra Kamble, Judicial Member observed that the assessee while computing the income and filing revised income was under bonafide mistake/bonafide belief that the assessee can claim the entire charges of amount paid to the AUDA as Capital Gain as deduction under Capital Gain. It was held that the standard belief or mistake cannot be termed as furnishing of inaccurate particulars or concealment of income. The Tribunal relied on the Supreme Court in the case of CIT vs. Reliance Petroproducts (P)   Limited and therefore held that the

penalty does not survive. Hence, appeal filed by the assessee was allowed. Scope of verification under ‘Limited Scrutiny’ Confined to Genuiness of Capital Gain, not Deduction Towards Remuneration to Partners: ITAT upholds Assessment Order Bharatnagar Buildcon LLP vs Pr.CIT CITATION: 2023 TAXSCAN (ITAT) 2335 The Pune Bench of Income Tax Appellate Tribunal (ITAT) held that the case of the assessee was selected for Limited scrutiny (CASS) and the scope of verification was confined only to the genuineness of capital gain and its correct reflection in the return of income therefore the AO did not examine the issue of deduction towards remuneration to partners in the assessment order. The Two Member Bench comprising of R. S. Syal, Vice President and Partha Sarathi Chaudhury, Judicial Member held that as the CCIT did not make out any case of converting ‘limited scrutiny’ into ‘complete scrutiny’ as a ground for revision, the contention of the DR on this score cannot be entertained. Therefore the CCIT was not justified in branding the assessment order erroneous and prejudicial to the interest of the Revenue. Hence, the appeal was allowed. Addition in 153A assessment of an unabated assessment can be made on the basis of incriminating material only: ITAT deletes addition M/s.Arshiya Limited vs DCIT CITATION: 2023 TAXSCAN (ITAT) 2336 The

Mumbai bench of the Income Tax Appellate Tribunal (ITAT) held that the additions made by the Assessing Officer in both the years under consideration are not based upon any incriminating material found during the course of search operations. The two member bench consisting of Rahul Chaudhary (Judicial member) and B.R. Baskaran (Accountant member) held that the additions made by the Assessing Officer in both the years under consideration are liable to the deleted. There is no requirement to adjudicate the issues urged on merit. ITAT deletes Penalty u/s 271B for the assessee being able to establish reasonable cause behind their failure deserves to be considered u/s 274 Evermore Polymer Systems Ltd vs CIT-A (NFAC) CITATION: 2023 TAXSCAN (ITAT) 2337 The Mumbai bench of the Income Tax Appellate

Tribunal (ITAT) held that the assessee clearly deserves to be considered under Section 274 where in it is provided that if assessee is able to establish the reasonable cause. The two member bench of the tribunal consisting of Amit Shukla (Judicial member) and Gagan Goyal (Accountant member) held that the assessee clearly deserves to be considered under Section 274 wherein it is provided that if assessee is able to establish the reasonable cause behind its failure, no penalty can be imposed. In the given circumstances, the action of AO were not accepeted and appeal order passed by . CIT(A), in the result penalty imposed is directed to be deleted. Thus the appeal was allowed. ITAT Directs Revision as no Fault could be Found in the Observation that the Assessment was Framed without Making due enquires M/s. Balaji Builders vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2330 The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that no fault could be found in the observation that the assessment was framed without making due enquiries. In such a case, revision would be justified in terms of the decision of Supreme Court. The two member bench consisting of Manomohan Das (Judicial member) and Manoj

Kumar Aggarwal (Accountant member) he that no fault could be found in the observation that the assessment was framed without making due enquiries. In such a case, revision wou be justified in terms of the decision of Supreme Court in the case of Malabar Industrial Company Ltd. The case law of Denial Merchants P. Ltd. vs. ITO, as referred to by CIT-DR, also supports the revision of the order. Thus the appeal was allowed. Absence of Express Agreement for Brand Promotion Excludes AMP Expenditure as International Transaction: ITAT deletes Addition on Kellogg India Kellogg India Pvt. Ltd vs ACIT CITATION: 2023 TAXSCAN (ITAT) 2338 The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) held that the transactions in question would not constitute international transaction relating to AMP expenditure. The two member bench consisting of B.R Baskaran (Accountant member) and N.K Choudhary (Judicial member) held that the said transactions would not constitute international transaction relating to AMP expenditure. It was also observed that BLT method as adopted by the TPO was not a valid method to benchmark the transactions. The technical collaboration agreement as referred to by . TPO did not envisage any such express arrangement / agreement between the assessee and its AE and therefore, the same could not support the case of the revenue. Thus the addition was deleted and the appeal was allowed.

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