Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax -7 Versus Oracle India Pvt. Ltd.

Addition on account of international transactions of payment of royalty - ITAT not confirming the action of the AO in restricting the payment of royalty to 30% of the actual sales as against 56% claimed by the assessee confirmed - Held that:- It has been rightly noted by the ITAT, 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

6 - Dated:- 12-7-2016 - S. Muralidhar And Najmi Waziri, JJ. For the Appellant : Mr. Dileep Shivpuri, Sr. Standing Counsel with Mr. Sanjay Kumar, Advocate For the Respondent : Mr. M.S. Syali, Sr. Advocate with Mr. Mayank Nagi and Ms Husnal Syali, Advocates ORDER 1. This appeal by the Revenue is directed against the order dated 14th October 2015 passed by the Income Tax Appellate Tribunal ( ITAT ) in ITA No. 1432/Del/2011 for the Assessment Year ( AY ) 2004-05. 2. The question of law urged by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

an order dated 13th December, 2006 for the AY in question on the basis of the Transfer Pricing ( TP ) Study submitted by the Assessee. Inter alia, in the order the TPO noted the submission made by the Assessee by its letter dated 8th November 2006 giving the reason for enhancement of the royalty rate from 30% to 56%. The Assessee drew a distinction between the royalty rate that was paid in the earlier years and the 'effective royalty' during those years. The Assessee was able to demonstr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

perused the record of the case. There is no dispute that for distribution division, in the current assessment year, the assessee had adopted TNMM as the arm s length standard for the inter company royalty expenses. The Assessee had earned an OP/sales ratio of 23.3%, which was much more than the mean OP/sales ratio of 2.2% earned by comparable companies. The assessee in June 2003 had changed its royalty arrangement for Oracle Corporation to a level of 56% of actual sales revenue from earlier lev .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version