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2023 (5) TMI 109 - ITAT MUMBAITP Adjustment - payment of royalty, project engineering and manufacturing drawings - addition made treating the international transactions pertaining to payment of royalty for receipt of technical knowhow, payment of engineering, and manufacturing drawing fees and payment of brand license fee and for availing the services, were the assessee has paid 2% of contract value to its AE and royalty paid @5% of the selling price to its AE - TPO has treated it as Rs. Nil - As argued agreement between the assessee and krupp polysius AG was approved by the RBI and the assessee has bench marked the transactions with the TNMM - HELD THAT:- We find the issues in the present appeal are identical to earlier year decided by the Hon’ble Tribunal in the assessee’s case for the A.Y 2009-10 [2020 (9) TMI 1289 - ITAT MUMBAI] such payment has been approved or deemed to have been approved by the RBI. 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 of Rs. 4.29 crore made by the A.O. in this regard. The payments are to be considered at ALP and accordingly direct the assessing officer to delete the addition and allow the grounds of appeal. Reimbursement of expenditure - Contentions raised by the Ld. DR on this issue that no information was filed and the benefit has been obtained by the assessee and these facts were never brought on record before A.O/DRP. Accordingly, to meet the ends of justice, we restore the disputed issue to the file of the AO to examine details and adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information and we allow the ground of appeal of the assessee for statistical purposes.
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