https://www.taxtmi.com/caselaws?id=330080 The ITAT's decision to delete the addition made by the AO and not confirm the restriction on royalty payment to 30% was upheld. The ITAT found the Assessee's increase in royalty payment to 56% justified due to relaxed government controls and approval processes. The change in royalty arrangement was supported by the TNMM arm's length standard and higher profitability ratios. The liberalized policy allowed royalty payments based on actual sales, aligning with subsequent assessment years' practices. The ITAT's decision was upheld, dismissing the Revenue's appeal. en-us Tue, 12 Jul 2016 00:00:00 +0530 Thu, 01 Sep 2016 11:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330080 The ITAT's decision to delete the addition made by the AO and not confirm the restriction on royalty payment to 30% was upheld. The ITAT found the Assessee's increase in royalty payment to 56% justified due to relaxed government controls and approval processes. The change in royalty arrangement was supported by the TNMM arm's length standard and higher profitability ratios. The liberalized policy allowed royalty payments based on actual sales, aligning with subsequent assessment years' practices. The ITAT's decision was upheld, dismissing the Revenue's appeal. Case-Laws Income Tax Tue, 12 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330080