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2019 (6) TMI 443 - HC - Income TaxTPA - ALP of payment of royalty u/s 92CA(3) - ITAT allowing the assessee's contention that as the payments of Royalty were approved by the Reserve Bank of India ('RBI'), the same was at Arm's Length - HELD THAT:- Transfer Pricing Officer could have applied any of the specified methods for determining Arm's Length Price of the transaction, in case he was of the opinion that the purchase of knowhow made by the assessee from the associated enterprise was not at Arm's Length. Instead of carrying out any such scientific exercise, the Transfer Pricing Officer went on to the justification of the purchase made in the context of the incremental benefit earned by the assessee out of such know-how. This was clearly not within the purview of the Transfer Pricing Officer. Transfer Pricing Officer could not replace the assessee and question its business decision. In the context of the purchase being at Arm's Length, the CIT(Appeals) had permitted the assessee to produce additional evidence which was taken on record after remand report and such evidence proved that the price paid by the assessee was at Arm's Length. No question of law arises. Income Tax Appeal is dismissed.
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