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2013 (5) TMI 494 - AT - Income TaxAdjustment to arm's length price - downsliding adjustment of ALP made by the TPO and sustained by the DRP - assessee company is a 'Joint Venture (74:26) between ABP Private Limited, part of the ABP Group and STAR News Broadcasting Limited, wholly-owned subsidiary of the STAR Group - Held that:- Find nowhere either in the agreement or in the submissions made before the revenue authorities that the assessee had to pay more in non prime time slot to off-set the deficit of revenue transferred to Star TV in prime time slots. From the rate card the assessee had to make the payment of Rs. 15,10,22,365/- in the financial year, against which the assessee was able to make the payments of Rs. 10,00,22,000/- only. Except for a clause prescribing an interest @ 9% on shortfall, there are no penalty clauses, which could create pressure or insinuate the assessee to fall back on non prime time slots to recover the shortfalls in payment to be made as per agreed rate card. Since the agreement is also silent, thus cannot accept that the assessee could utilize the basket of ad-slots and aggregate the same for achieving the target. Submissions of the AR cannot be accepted that the aggregation could be allowed because, the payments were being made for same channel and same functions, i.e. ad-space, the difference between them only being prime time slot and non prime time slot. Since there was no justification for higher payment made by the assessee as compared to the third party payments, the adjustment as suggested by the TPO and sustained by the DRP, accordingly is fair and reasonable and does not call for any disturbance.
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