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2015 (5) TMI 920 - AT - Income TaxTransfer pricing adjustment - international transaction of Royalty payment - Held that:- The most of the key parts are registered in India, contribution of UK entity was considered to be minor as major part of designing of this “India specific product”, it was concluded had been done in India. In view of these facts the TPO questioned the occasion to make royalty payments to JC Bamford. Thus relying on the reasons considered by the DRP in 2007-08 assessment year the TPO in the facts of the present case adopted the same reasoning leading to rejection of assessee’s claim. Loss pertaining to M/s JCB Manufacturing Ltd. as a result of the merger of the entity with the assessee company - held that:- the appellant company claimed loss of JCB Manufacturing Limited (“amalgamating company”) as returned to be set off and carry forward. The AO made TP adjustment and reduced the loss in the assessment order. The appeals against TP adjustments are stated to be pending before the ITAT in the case of JCB Manufacturing Limited. The fact that only assessed loss is to be carried forward is not in dispute. In the afore-mentioned facts and circumstances, the limited prayer of the assessee is allowed.
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