https://www.taxtmi.com/caselaws?id=361014 Transfer pricing adjustment to royalty or licence fee payments was found unsustainable where the authorities had not given reasons for rejecting the assessee's chosen method and had substituted the transactional net margin method without a speaking analysis; the matter was therefore remanded for fresh consideration after proper benchmarking. In contrast, disallowance for payments to non-resident entities was deleted because the remittances were treated as compensatory business receipts, the foreign recipients had no permanent establishment in India, and the sums were therefore not taxable in India, so no withholding obligation arose. en-us Tue, 22 May 2018 00:00:00 +0530 Mon, 28 May 2018 08:38:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361014 Transfer pricing adjustment to royalty or licence fee payments was found unsustainable where the authorities had not given reasons for rejecting the assessee's chosen method and had substituted the transactional net margin method without a speaking analysis; the matter was therefore remanded for fresh consideration after proper benchmarking. In contrast, disallowance for payments to non-resident entities was deleted because the remittances were treated as compensatory business receipts, the foreign recipients had no permanent establishment in India, and the sums were therefore not taxable in India, so no withholding obligation arose. Case-Laws Income Tax Tue, 22 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361014