Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 215 - DELHI HIGH COURTTransfer Pricing Adjustment - Use of Brand name/ trade name - Arm's length price - Payment of License Royalty - Expense incurred wholly and exclusively for the purpose of business - In assessee’s returns AO had disallowed sum of Rs.33.82 crores being 40% of the general license as not incurred wholly and exclusively for the purpose of business and that the royalty was excessive in the circumstances of the case so as to attract proportionate disallowance of 40% - held that:- Expenditure was neither excessive nor unreasonable, the same could not be disallowed u/s 40 A (2) of the Act - assessee has been able to discharge its burden namely it was a justifiable and reasonable business expenditure and thus should be allowed u/s 37 of the Act - Transfer Pricing Officer after detailed analysis and examination of the material on record concluded that pricing adjustment was unnecessary; therefore, the application of this amendment, made later, to the facts of this case especially in a context in which they have arisen, is academic - no substantial question of law arises, in these circumstances the appeal is dismissed. Decision in COMMISSIONER OF INCOME TAX Versus M/S NESTLE INDIA LTD [2011 (5) TMI 566 - DELHI HIGH COURT] followed.
|