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2014 (8) TMI 1028 - HC - Income TaxTransfer pricing adjustment - ITAT deleted the addition - Held that:- As find that DRP has held that the royalty payment was at arm's length which cover a substantial part of TPO's disallowance at ₹ 1,56,43,832/-. The DRP has observed that as for the payment made under the other heads the stand taken by the TPO was approved. We find that regarding the payments made under other heads, TPO has not at all taken any detailed stand through out his transfer pricing order. The TPO has discussed the transaction of royalty payment. He has not taken up any other heads independently. In these circumstances, we find that there is no cogent basis for sustaining the addition made with regard to the payment of technical fee, training fee, testing expenses, payment of modification of tools and payment of design and development expenses. The DRP also has allowed the royalty payment and disallowed the other allied payments. For arriving at the above decision, DRP has not given any cogent reasons. In these circumstances, in our considered opinion, the addition on account of arm's length price amounting to ₹ 26,48,678/- is not sustainable. We are not inclined to interfere with the order passed by the Tribunal. - Decided against revenue
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