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2014 (11) TMI 1188 - AT - Income TaxAddition on account of adjustment of Arm's length price of the international transaction on payment of royalty - application of CUP method - MAM selection - Held that:- DR could not justify the application of CUP method to Arms Length working. The products manufactured by the appellant were developed from technology support provided by the AE, it would not have been possible so without the continuous AE support. The rights of access to the ongoing technical support and development of new products received by the appellant were clearly provided in the agreements entered into with the AE. The cost benefit test as worked out by the TPO was not based on proper appreciation of the facts and thus CUP method applied by the AO / TPO was not justifiable. The judicial citations relied on by ld. CIT(A) as well as further judgments relied on by the assessee including Hon'ble High court in the case of Delhi EKL Appliances Ltd. (2012 (4) TMI 346 - DELHI HIGH COURT) support the view taken by ld. CIT(A). - decided against revenue
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