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2021 (7) TMI 338 - HC - Income TaxTP Adjustment - TPO treating Arms length Price for royalty payment as 'NIL' even though the TPO had clearly established that assessee had not derived any benefit out of royalty payment - HELD THAT:- The issue whether the Transfer Pricing Officer, while exercising the jurisdiction under Section 92KA(3) of the Act, can only determine the Arms Length Price of an international transaction, is no longer res integra and the same has already been adjudicated by the decisions of Delhi and Bombay High Courts respectively in 'CIT Vs. EKL APPLIANCES LTD.' [2012 (4) TMI 346 - DELHI HIGH COURT] and 'CIT Vs. LEVER INDIA EXPORTS LTD', [2017 (2) TMI 120 - BOMBAY HIGH COURT]. The Transfer Pricing Officer cannot derive any benefit from the transaction. Besides that, the finding recorded by the Tribunal that the international transaction of payment of royalty ought to be bench marked in an aggregated manner at entity level on application of transactional net margin method has not been challenged by the revenue before this Court. Therefore, the issue involved in this appeal is covered by the decisions of Bombay as well as Delhi High Court. - Decided in favour of assessee.
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