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2019 (7) TMI 312 - DELHI HIGH COURTTP adjustment - ALP determination - royalty payments to its Associated Enterprise (AE) - ITAT considered it reasonable to direct the TPO to allow the average royalty percentage at 5.6% (against 6% claimed by the Assessee) - HELD THAT:- Order of the TPO, relied upon by the counsel for the Revenue, does not make any reference to the prevalent practice in the travel industry which would give an indication as to the trend in the royalty payment. That could give reasonable indication whether the payment of royalty by the Assessee to its AE for the AY in question was unreasonable. In the absence of such empirical data, to merely conclude that the payment of higher royalty was not justified only because it did not result in any tangible benefit to the Assessee was not be the right approach. With the DRP having accepted the change in the average royalty percentage payment in the travel industry for the following AY at 5.6%, the direction issued by the ITAT to the TPO to adopt the same percentage for the AY in question does not appear to be unreasonable or give rise to any substantial question of law.
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