Free-of-Cost Testing Assets Not Taxable Under Section 28(iv): ITAT Bangalore

28(iv) of the Income Tax Act by applying the mark-up on impugned assets received free of cost by assessee from its AEs. The assessee has Software Development Services revenue of Rs.158,98,14,128 and marketing support services of Rs.30,59,28,640. The assessee benchmarked the above transaction computing the margin of the assessee in Software Development Services at 11.98% and marketing support services at 10%. The assessee has also challenged the same that company is engaged in Software Development Services which are functionally different. TPO has rejected the same stating that the R&D activity in software development does not create any intangible.