TaxTMI 
TaxTMI 
2017 (4) TMI 1597
X X X X Extracts X X X X
X X X X Extracts X X X X
....010 for the assessment year 2006-07. 2. The first ground in this appeal is with regard to Arm's Length Price (ALP) in respect of advertisement expenditure incurred by the assessee to the Associate Enterprises (AEs). 3. We have heard both the parties and perused the material on record. This issue is squarely covered by the decision of co-ordinate bench of this Tribunal in assessee's own case in ITA No.1592/Mds./2007 dated 12.05.2016 wherein the Tribunal disposed off this ground by observing as follows:- "2.4.6 We have heard both the parties and perused the material on record. In this case, Titan International Marketing Ltd., (TIML), London incurred Rs. 854.08 lakhs towards advertisement expenditure during the year. The ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ory. The risk associated with marketing and distribution, is not borne by TIL in India. On the other hand, it is borne by AE outside India and the TIL is only to perform function of contract manufacturer for which it has got 9.73% mark up on total cost. In this background, we have to see the claim of expenditure of Rs. 803.31 lakhs on advertisement expenditure, which is seen from the Table at page-3 of this order. There is no agreement or documents produced by the assessee to show the assessee is liable to incur this expenditure. In other words, the assessee is getting only mark-up on the cost of manufacture of the goods supplied to the AE and it is nowhere connected with the sales of the AEs. All the risks associated with the sales of AEs,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustment is necessary on transaction which is not tenable in view of the decision of the Bangalore Tribunal in the case of 24/7 Customer.com Pvt. Ltd., in 140 ITD 344 (Bangalore). Accordingly, this ground of the assessee is rejected." 3.1 Accordingly, placing reliance on the order of the Tribunal in assessee's own case, we are inclined to dismiss the ground taken by the assessee. 4. The second ground is with regard to Transfer Pricing addition on account of interest of Rs. 23,76,936/- in respect of interest free advertisement advances made by the assessee to it's A.Es. 5. We have heard both the parties and perused the material on record. Similar issue came for consideration before this Tribunal in assessee's own case cited s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... held by Mumbai Bench of the Tribunal in the case of M/s.Aurinpro Solutions Ltd. Vs.Addl.CIT(27 ITR (Trib.) 276). Accordingly, we upheld the argument of the ld.D.R on this issue. If any difference in the rate of interest is charged by the TPO/AO as compared to LIBOR plus 2%, the same to be recomputed." Accordingly, placing reliance on the order of the Tribunal in assessee's own case, we are inclined to dismiss the ground taken by the assessee. 6. The third ground in this appeal is with regard to disallowance u/s.14A of the Act. 7. We have heard both the parties and perused the material on record. For assessment year 2006-07, Rule-8D is not applicable as it was inserted with effect from 24.03.2008. Accordingly, in our opinion fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s which would be in terms of Sec.80-IA(8) r.w.sec.80-IB(13) of the Income Tax Act. Accordingly, the issue in dispute is remitted to the file of the AO for re-computation of the profit of Euro Watch Division and considered the claim of assessee for deduction u/s.80-IB in the light of order of Tribunal in the case of West Coast Paper Mills Ltd., Vs. ACIT reported in [2006] 103 ITD 19 (ITAT)[Mum]. This issue is partly allowed for statistical purposes." Accordingly, placing reliance on the order of the Tribunal in assessee's own case, we are remitted the issue to the file of AO for fresh consideration in the light of the directions. 10. The last ground is with regard to provision for doubtful advances of Rs. 25 crores. 11. Before u....