TMI Blog2016 (7) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... T, once the liberalized policy did away with the requirement of computing the royalty with reference to the list price (Indian Published Price), the Assessee moved from the regime of royalty payment as a percentage of the list price to the actual license and support review. In the circumstances, the conclusion arrived at by the ITAT appears to be perfectly justified. It is based on facts and do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004-05. 2. The question of law urged by the Revenue is whether the ITAT was justified in deleting the addition made by the Assessing Officer ( AO ) of ₹ 59,78,91,950/- on the basis of the adjustment made by the Transfer Pricing Officer ( TPO ) on account of international transactions of payment of royalty and not confirming the action of the AO in restricting the payment of royalty to 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 56%, it had actually resulted in a lower payout during the current year. The Assessee also attributed the enhancement of the royalty rate from 30% to 56% to the relaxing of controls by the Government of India. 4. In the impugned order of the ITAT has after a detailed discussion concluded as under: 32. We have considered rival submissions and have perused the record of the case. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Government of India s foreign exchange control policy. Prior to FY 2003-04 the assessee made royalty payment, calculated at 30% of IPP of the products licensed to Indian customer, to comply with the then prevailing Exchange Control Regulations. The provision of the Exchange Control Regime then authorized the Indian Master licensee to duplicate the software and sub-license to Indian customers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence to the list price (Indian Published Price), the Assessee moved from the regime of royalty payment as a percentage of the list price to the actual license and support review. 6. In the circumstances, the conclusion arrived at by the ITAT appears to be perfectly justified. It is based on facts and does not give rise to any substantial question of law. It may also be noticed that in the AYs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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