Transfer-pricing upward adjustment deleted; royalty, 3G depreciation and DOT costs allowed; licence fee capitalization disallowed; section 115JB

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....The ITAT upheld deletion of the transfer pricing upward adjustment in favour of the assessee, holding the TPO erred by applying CUP without identifying comparable uncontrolled transactions and without valid show-cause, and rejected Revenue's estoppel plea; the TPO/AO was directed to delete the royalty adjustment. Depreciation/amortization relating to 3G spectrum, DOT penalty and asset restoration costs were allowed for the assessee based on binding tribunal/high court group precedents. A written-back liability arising from capital equipment was treated as business income and the assessee's claim was disallowed. Finance-lease payments to IBM were directed to be allowed as revenue expenditure. Capitalisation of licence fees was disallowed in line with Supreme Court authority, while miscellaneous expenses written off were permitted for computing book profits under section 115JB.....