2017 (3) TMI 1639

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....anding Counsel. For The Respondent : None ORDER The Revenue's appeal under Section 260A of the Income Tax Act, 1961 challenges an order of the Income Tax Appellate Tribunal (ITAT) which on one hand remitted one issue, i.e. benchmarking of management fee and overruled the opinion of the Dispute Resolution Panel (DRP) and on the other, payment of royalty to the tune of Rs. 8,47,65,448/-. ....

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....that the assessee was justified in claiming these as pay-outs or expenses. The assessee was aggrieved and had approached the ITAT, complaining that, firstly, the CUP method could not be applied and that instead the TNMM method had to be applied. The second argument was that the assessee's AO had required the payment of royalties and that the issue concerned was one of real business arrangements....

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....h Court while holding that so long as the expenditure or payment by assessee has been demonstrated to have been incurred or laid out for the purposes of business, it is no concern of the TPO to disallow the same on any extraneous reasoning, observed as follows:- XXXXXX XXXXXX XXXXXX" 17. Here, in the present appeal, what we see is the TPO sitting on judgment on the business and commercial ex....