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2020 (9) TMI 1289 - AT - Income TaxTP Adjustment - comparable selection - exclusion of Engineers India Limited from the list of comparables, being a Government company - HELD THAT:- Dispute Resolution Panel (DRP) rejected the Government undertaking as comparable by following the order of Tribunal in assessee’s own case for AY 2008-09 [2013 (11) TMI 930 - ITAT MUMBAI]. We do not find any merit in ground No.1 of the appeal. Accordingly, the same is dismissed. TP adjustment on account of payment of royalty, project engineering and manufacturing drawings - assessee applied to the RBI seeking approval in respect of payment of royalty and technical fee through Central Bank of India - HELD THAT:- We find that the DRP has deleted the addition by placing reliance on the order of the Tribunal in assessee’s own case for assessment year 2008-09 [2013 (11) TMI 930 - ITAT MUMBAI] when a payment is made after obtaining due approval from the RBI, how its ALP can be computed at Rs. Nil, is anybody's guess. The fact of approval of the payment by the RBI has been succinctly recorded by the TPO in his order as well. He still chose to propose adjustment in respect of full payment. In our considered opinion, when the rate of royalty payment and fee for drawings etc. has been approved or deemed to have been approved by the RBI, then such payment has to be considered at ALP. We, therefore, direct to delete addition - Decided in favour of assessee.
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