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TMI Blog2017 (3) TMI 1639X X X X Extracts X X X X X X X X Extracts X X X X ..... t : None ORDER The Revenue's appeal under Section 260A of the Income Tax Act, 1961 challenges an order of the Income Tax Appellate Tribunal (ITAT) which on one hand remitted one issue, i.e. benchmarking of management fee and overruled the opinion of the Dispute Resolution Panel (DRP) and on the other, payment of royalty to the tune of Rs. 8,47,65,448/-. It is urged that the Transfer Pricing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g these as pay-outs or expenses. The assessee was aggrieved and had approached the ITAT, complaining that, firstly, the CUP method could not be applied and that instead the TNMM method had to be applied. The second argument was that the assessee's AO had required the payment of royalties and that the issue concerned was one of real business arrangements. The findings of the ITAT are premised upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture or payment by assessee has been demonstrated to have been incurred or laid out for the purposes of business, it is no concern of the TPO to disallow the same on any extraneous reasoning, observed as follows:- XXXXXX XXXXXX XXXXXX" 17. Here, in the present appeal, what we see is the TPO sitting on judgment on the business and commercial expediency of the assessee which is erroneous as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw support from the decision of the Mumbai Bench of the Tribunal in Cadbury India Ltd. vs ACIT in I.T.A. No. 7408/Mum/2010 and I.T.A. No. 7641/Mum/2010 wherein the Bench has upheld the use of TNMM for royalty by holding: XXXXXX XXXXXX XXXXXX." This Court is of the opinion that having regard to the previous decision in EKL Appliances (supra), the ratio of which was correctly applied, no substant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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