TaxTMI 
TaxTMI 
2021 (7) TMI 338
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.... this Court on the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the Transfer Pricing Officer/Assessing Authority is not right in treating Arms length Price for royalty payment as 'NIL' eventhough the TPO had clearly established that assessee had not derived any benefit out of royalty payment?" 2. Facts leading to filing of this appeal briefly stated are that the assessee filed the return of income for the Assessment Year 2007-08 declaring a total income of Rs. 3,87,19,390/-. The Assessing Officer initiated proceeding under Section 148 of the Act. As the assessee had entered certain international transactions, the Assessing Officer made a ....
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.... the method adopted by the assessee of bench marking the international transaction at entity level by adopting the net margin method is correct. The Commissioner of Income Tax (Appeals) determined the adjustment on the aggregated international transaction. Being aggrieved by the aforesaid order passed by the Commissioner of Income Tax (Appeals), the revenue filed an appeal before the Tribunal. The assessee also filed the cross-objection in the appeal. 3. The Tribunal, by a common order dated 26.08.2016 dismissed the appeal preferred by the revenue and affirmed the order of the Commissioner of Income Tax (Appeals) to the extent of bench marking the transaction of payment of royalty along with other transactions by applying the transactional....
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....tended that the order passed by the Tribunal is therefore, liable to be set aside. 5. On the other hand, learned counsel for the assessee submitted that the finding recorded by the Tribunal that the international transaction of payment of royalty ought to be bench marked in a correct manner at entity level of application of net margin method, has not been challenged by the revenue before this Court. It is further submitted that since the revenue has accepted the aforesaid finding, the issue involved in this appeal is rendered academic. It is also submitted that the Tribunal, while recording the aforesaid finding, has relied on a decision of co-ordinate bench of the Tribunal in 'DCIT Vs. TOYOTA KIRLOSKAR MOTORS PVT. LTD.' i.e. order....
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....levant extract of the decision of High Court of Bombay in LEVER INDIA EXPORTS LTD. is reproduced below for the facility of reference. "7. We note that the Tribunal has recorded the fact that the respondent assessee has launched new products which involved huge advertisement expenditure. The sharing of such expenditure by the respondent assessee is a strategy to develop its business. This results in improving the brand image of the products, resulting in higher profit to the respondent assessee due to higher sales. Further, it must be emphasized that the TPO's jurisdiction was to only determine the ALP of an International Transaction. In the above view, the TPO has to examine whether or not the method adopted to determine the ALP is th....