2023 (9) TMI 896

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Niraj Sheth i/b Mr. Atul K. Jasani. PC:- 1. Five substantial questions of law have been proposed. We went through proposed questions with the assistance of Mr. Suresh Kumar and in our view the only question, which is required to be considered is question (D), which reads as under: "Whether on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for trade-mark, customer list and goodwill amounting to Rs. 27.64 Crores. The Assessing Officer ("AO"), this being an international transaction within the meaning of Section 92B of the Act, made a reference to Transfer Pricing Officer ("TPO") under Section 92CA(1) of the Act for determination of Arms Length Price ("ALP"). TPO held that the stated value of consideration was not at ALP and observed ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....st this order, this appeal is preferred. 3. Among the various intangibles one head was trade-mark. The cost of acquiring the trade-mark was capitalized by the assessee and depreciation was claimed by computing taxable income. The value attributed to trade-mark was only Rs. 46.57 lacs approximately out of the total consideration of Rs. 28.51 Crores. The assessee has also submitted valuation repo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to invest, what weightage is to be given etc., in our view, is a measure of commercial expediency. The expression commercial expediency, as held in S.A. Builders Ltd. v. Commissioner of Income-tax (Appeals) and Another [2007] 288 ITR 1 (SC), is an expression of wide import and include such expression as a prudent businessman incurred for the purpose of business. In SA Builders Ltd. (supra) the Hon....