2012 (8) TMI 1208

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....Jain CIT (DR). ORDER PER R.P. TOLANI, J.M:: This is assessee's appeal against directions of the Dispute Resolution Panel-II, New Delhi dated 26-09-2011 U/s 144C(5) of the Income-tax Act, 1961, relating to A.Y. 2007-08. 2. Ground nos. 1 to 4 raise a ground of transfer pricing and ground nos. 7, 8 & 9 are pleaded to be consequential in nature. The summarized grounds for adjudication are ....

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....of Datacraft India Limited (133 TTJ 377). C. That on the facts and in law, the learned Assessing Officer /DRP has erred in disallowing expenses amounting Rs. 293,379 on account of non deduction of TDS by the Assessee company on the traveling expenses reimbursed to Luxottica S.r.L Italy. 3. Apropos T.P. adjustment, learned counsel for the assessee made detailed arguments which in fine c....

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....d risk distributor and the sale promotion and advertisement expenses being for promotion of brand. It has been ignored that these expenses have been incurred only for promotion of the products and benefit, if any, to the brand name RayBan is only incidental in nature. 3.3. Even if it is assumed that the assessee is to be recharacterized as a limited risk distributor/ agent, even then the assess....

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....ion of service and issue of advertisement and marketing expenses is only arrangement of expense. Assessee has not transferred any disproportionate profits at entity level. However, learned counsel for the assessee fairly conceded that the agreement about the arrangement of advertisement expenses by various entities of the subsidiary concerns was not produced before Assessing Officer or TPO as they....