https://www.taxtmi.com/caselaws?id=310670 ITAT Kolkata allowed the taxpayer's appeal regarding transfer pricing adjustment on royalty payments to associate enterprise. Revenue authorities applied benefit and commercial expediency tests to determine nil ALP at 1.67% of net revenue against taxpayer's 0.5% rate. ITAT held these tests inappropriate and rejected TPO's use of taxpayer's own nil payments in earlier years as comparable under CUP method, noting transactions between related parties cannot serve as uncontrolled comparables. The TP adjustment was deleted. Regarding leave encashment provision disallowance under section 43B(f), matter was remitted to AO pending Supreme Court's final decision in related constitutional challenge. en-us Fri, 07 Sep 2018 00:00:00 +0530 Mon, 06 Nov 2023 10:37:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310670 ITAT Kolkata allowed the taxpayer's appeal regarding transfer pricing adjustment on royalty payments to associate enterprise. Revenue authorities applied benefit and commercial expediency tests to determine nil ALP at 1.67% of net revenue against taxpayer's 0.5% rate. ITAT held these tests inappropriate and rejected TPO's use of taxpayer's own nil payments in earlier years as comparable under CUP method, noting transactions between related parties cannot serve as uncontrolled comparables. The TP adjustment was deleted. Regarding leave encashment provision disallowance under section 43B(f), matter was remitted to AO pending Supreme Court's final decision in related constitutional challenge. Case-Laws Income Tax Fri, 07 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310670