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2018 (3) TMI 1657 - AT - Income TaxTransfer pricing adjustment on payment of Royalty - selection of MAM - TNMM - Held that:- As decided in assessee's own case for assessment year 2002-03 Tribunal decided the issue in favour of assessee by upholding Transactional Net Margin Method (TNMM) adopted by assessee as the most appropriate method for benchmarking its international transaction including payment of Royalty and also emphasized on the rule of consistency. Addition made on account of homologation expenses - Held that:- Assessing Officer without examining the details furnished by the assessee has made ad-hoc disallowance of ₹ 10,00,000/- merely on the basis that disallowance was made in assessment year 2002-03, therefore, some disallowance has to be made in assessment year 2003-04, as well. This reasoning is certainly not acceptable for making disallowance, even if, it is on estimation basis. Once having missed the opportunity to examine material available to the Assessing Officer during assessment proceedings, second innings cannot be granted to the Assessing Officer to examine the same. No infirmity in the order of Commissioner of Income Tax (Appeals) in deleting ad-hoc disallowance with respect to homologation charges. - Decided in favour of assessee
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