2018 (8) TMI 1196

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....ion Panel (DRP)/Ld. Assessing Officer (AO) are erroneous in law and on the facts of the case. 2. The Ld. DRP/AO are not legally justified in making an adjustment of Rs. 2,20,99,958/- as profit attributable to the appellant company under the profit Split Method in connection with the absolute sale of intangible assets to AE when such revenue is generated by AE of the appellant company i.e., DQ Ireland which is the absolute owner of such intangible assets. 3. The Ld. DRP/AO are erroneous in not considering the fact that the Intangible assets were sold to its AE in earlier years at Arm's Length Price and accepted by the Ld.AO/TPO and therefore did not require any further additional adjustment. 4. The Ld. AO erred....

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....relevant AY under both normal provisions and the MAT provisions of I.T. Act. During the course of assessment proceedings, AO noticed that assessee has entered into international transactions with its AE and, therefore, determination of Arm's Length Price of international transactions was referred to TPO, who considered the transactions and proposed an adjustment of Rs. 2,20,99,958/- towards profit attributable to the assessee in connection with sale of intangible assets by adopting the profits split method. On appeal, the DRP allocated 80% of the revenue to the assessee and in accordance therewith, the final assessment order was passed. 4.1 At the time of hearing, ld. Counsel for the assessee submitted that during earlier years, assessee....

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....ibutable to the assessee company in connection with sale of intangible assets by the assessee to its AE, DQ Entertainment (Ireland). The IPR was sold by the assessee to its AE in the earlier A.Ys and the ALP of the same had arisen for consideration in the A.Y 2010-11. The Coordinate Bench of the Tribunal at Para 15 of its order in ITA No.151/Hyd/2015, dated 22nd June, 2016 has held as under: "15. Considered the submissions of both the parties and perused the material facts on record as well as the orders of revenue authorities. The facts are, the assessee had sold "IP" (Jungle Book) to its "AE" on 30/09/2009 at the development stage. It was not fully developed to generate revenue immediately. As per ld. AR, "AE" was in a position t....