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2011 (9) TMI 1054 - HC - Income TaxNo further income required to be attributable to the assessee as the transaction was at arm's length price - Held that:- As decided in Set Satellite (Singapore) Pte. Ltd's. case (2008 (8) TMI 96 - BOMBAY HIGH COURT) is clearly attracted. In that case the High Court has held that if correct ALP is applied and paid, nothing further would be left to be taxed in the hands of the foreign enterprise. In the said case, Morgan Stanley & Co. Inc.'s case (2007 (7) TMI 201 - SUPREME Court ) as well as Circular No.23 issued by the CBDT was taken into consideration. The Court was also pleased to record that the commission paid to the agent was 15% services performed by the assessee's agent in India was in line with the existing industry standards in India at the prevalent time. Reliance was also placed on Para 3 of Circular No.742 dated 02.5.1996 issued by the CBDT, which referred to the fact that the agent's commission from foreign telecasting companies is 15% or so of the gross sum, to contend that the CBDT itself had considered 15% as the normally accepted commission rate payable to agents of the telecasting companies.
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