TaxTMI 
TaxTMI 
2017 (10) TMI 1259
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....he impugned order dated 20.03.2013, passed by the AO in consonance with the orders passed by the ld. CIT (A)/TPO under section 143 (3) read with section 144C of the Income-tax Act, 1961 (for short 'the Act') qua the assessment year 2009-10 on the grounds inter alia that :- "The Appellant respectfully submits as under : Transfer Pricing ("TP") Adjustment - Reimbursement of Software Costs (INR 69,59,814) 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding TP adjustment on account of reimbursement of software costs by the Appellant to its Associated Enterprise ("AE"), namely Bentec S.p.A. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in summarily rejecting Appe....
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.... facts necessary for adjudication of the controversy at hand are : Benetton India Private Limited (BIPL) is a wholly owned subsidiary of Benetton International NV, Netherlands which is also a subsidiary of Benetton Group SPA, Italy. The taxpayer is into the business of production and sale of readymade garments in the name and style of 'Benetton' in India and for this purpose, it imports certain garments and accessories for sale at its outlets. The taxpayer also export finished goods manufactured by it to Benetton Group entities on regular basis and it assisted Benetton SPA in acquiring garments and other finished products from third party vendors in India. The taxpayer has entered into a technical know-how agreement by paying royalty at 4.8....
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.... Length Price (ALP). 8. The taxpayer carried the matter before the ld. CIT (A) who has deleted the addition of Rs. 8,30,15,291/- on account of transfer pricing adjustment qua royalty paid to AE by following decision of his predecessors for AYs 2007-08 and 2008-09. Ld. CIT (A) however deleted the TP adjustment of Rs. 69,59,814/- on account of reimbursement of software cost by the taxpayer to its AE, namely, Benetton SPA. Feeling aggrieved, both the taxpayer as well as the Revenue have come up before the Tribunal by way of filing the present cross appeals. 9. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of....
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....taxpayer / businessman to enter into any transaction for its business and relied upon the decision rendered by Hon'ble Delhi High Court in case of CIT vs. EKL Appliances Ltd. - TS-206-HC-2012 (DEL)-TP. The ld. AR for the taxpayer further contended that the issue in controversy has already been decided by the coordinate Bench of the Tribunal in taxpayer's own case for AY 2007-08. 12. However, on the other hand, the ld. DR for the Revenue relied upon the order passed by TPO/ CIT (A). 13. The coordinate Bench of the Tribunal upheld the findings of ld. CIT (A) returned in favour of the taxpayer qua the identical issue on the premise that it is settled principle of law that certain transactions entered into by the taxpayer for business expedie....
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....ave furnished the details of intangibles provided by Bencom to the taxpayer before TPO as is mentioned in para 11.4 of the TP order. TPO treated an amount of Rs. 8,30,15,291/- as adjustment u/s 92CA on account of value of the royalty transfer in uncontrolled condition at Rs.NIL under CUP. However, ld. CIT (A) deleted the addition by following the decision of his predecessors rendered in assessee's own case for AYs 2007-08 & 2008-09 which have already been affirmed by the coordinate Bench of the Tribunal. 17. The ld. CIT (A) has thrashed the issue threadbare and has came to the conclusion that in the transfer pricing study qua payment of royalty to Bencom, the taxpayer benchmarked the same by using CUP method. The taxpayer has used both int....