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TMI Blog2019 (6) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... ed methods for determining Arm's Length Price of the transaction, in case he was of the opinion that the purchase of knowhow made by the assessee from the associated enterprise was not at Arm's Length. Instead of carrying out any such scientific exercise, the Transfer Pricing Officer went on to the justification of the purchase made in the context of the incremental benefit earned by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is filed by the revenue to challenge the judgment of the Income Tax Appellate Tribunal ( Tribunal for short). Following questions are presented for our consideration: (a) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in deleting the addition, relating to payment of royalty u/s 92CA(3) of the Income Tax Act, 1961, amounting to ₹ 3, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay 2% of the net sale amount by way of royalty. This transaction came up for consideration before the Transfer Pricing Officer who made adjustments primarily on the ground that the assessee had not derived any specific benefits out of such technology nor the assessee had received any incremental benefits on account of payment of such royalty amount. The TPO also recorded that the assessee had n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal confirming the decision of the CIT (Appeals). The Transfer Pricing Officer could have applied any of the specified methods for determining Arm's Length Price of the transaction, in case he was of the opinion that the purchase of knowhow made by the assessee from the associated enterprise was not at Arm's Length. Instead of carrying out any such scientific exercise, the Transfer P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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