Expenditure on software license fees paid periodically is...

Expenditure on software license fees paid periodically is revenue in nature and should be allowed as deduction. No disallowance u/r 8D(2)(ii) warranted when own funds exceed tax-free investments. Disallowance u/r 8D(2)(iii) to be recomputed considering only investments earning tax-free income, excluding growth funds, and suo moto disallowance by assessee. Issue of unutilized MODVAT credit restored to AO for denovo determination as per amended section 145A. Providing counter-guarantee to AE is an international transaction; ALP to be calculated at 0.5%. Delay in receipt of receivables from AE is an international transaction; interest to be charged at LIBOR+100 basis points after 60 days credit period. Provision for warranty remitted to AO to examine basis, actual expenditure, and allow as per law. Amalgamation expenses u/s 35DD restricted to 1/5th deduction for 5 years from year of amalgamation. TDS issue u/s 194H on commission payable to MD remitted to AO for denovo verification.