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2015 (3) TMI 796 - AT - Income TaxTransfer pricing adjustment - adjustment to the arm’s length price of the advertisement services received from the associated enterprise - downsliding adjustment of ALP of ₹ 82,78,760/- made by the TPO and sustained by the DRP - Held that:- We do not find anywhere 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 ₹ 15,10,22,365/- in the financial year, against which the assessee was able to make the payments of ₹ 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, we do not accept that the assessee could utilize the basket of adslots and aggregate the same for achieving the target. We cannot accept the submissions of the AR 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, according to us is fair and reasonable and does not call for any disturbance, which we sustain. - Decided against the assessee.
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