Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Appeal allowed for statistical purposes, remitting transfer pricing issue back for fresh determination. The appeal was allowed for statistical purposes. The Appellate Tribunal remitted the issue of transfer pricing adjustment on export commission back to the ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appeal allowed for statistical purposes, remitting transfer pricing issue back for fresh determination.
The appeal was allowed for statistical purposes. The Appellate Tribunal remitted the issue of transfer pricing adjustment on export commission back to the Assessing Officer for fresh determination. The addition towards royalty payment for exports to Associated Enterprises was deleted based on reasons given in the previous year's order. The disallowance of sales tool expenses was also remitted to the Assessing Officer for a decision consistent with previous years' views. The Tribunal's order was pronounced on April 24, 2015.
Issues: 1. Transfer pricing adjustment on international transactions 2. Disallowance of sales tool expenses
Transfer Pricing Adjustment on International Transactions: The appeal was against the final assessment order concerning the addition towards transfer pricing adjustment on two international transactions: payment of export commission and royalty for exports to Associated Enterprises (AEs). The Transfer Pricing Officer (TPO) determined the arm's length price (ALP) for the export commission transaction as 'Nil' and disputed the royalty payment on exports to AEs, considering the assessee as a 'Contract manufacturer'. The TPO proposed a transfer pricing adjustment for royalty payment to AEs. The Appellate Tribunal found no distinguishing feature in the facts of the current year compared to the previous year and remitted the export commission issue to the AO/TPO for fresh determination. The addition on account of royalty for exports to AEs was deleted based on the reasons given in the previous year's order.
Disallowance of Sales Tool Expenses: The second ground of the appeal was against the disallowance of sales tool expenses incurred by the assessee. Similar issues had been raised in previous assessment years, and separate orders were passed. The Tribunal remitted the matter back to the Assessing Officer (AO) for a decision in line with the final view taken in earlier years. As the final view on this issue for previous years was unclear, the impugned order was set aside, and the matter was sent back to the AO for a decision consistent with the Tribunal's order for a prior assessment year.
In conclusion, the appeal was allowed for statistical purposes, and the Tribunal pronounced the order on April 24, 2015.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
