2026 (5) TMI 957

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....he appeal qua Assessment Year (AY) 2015-16 has been filed seeking adjudication of following proposed questions of law:- "A. Whether the Hon'ble Tribunal has erred in law and on facts in upholding the contention of the assessee that the Bright Line Test (BLT) is not in accordance with law without appreciating the facts that the BLT was not used as a method to determine the ALP but only as an economic/statistical tool to arrive at the cost of services rendered to foreign enterprise by Indian entity and when the TPO has the mandate to determine such cost as a primary step in ALP determination as provided under the Rules for A.Y 2015-16, 2017-18 and 2018-19? B. Whether the Hon'ble Tribunal has erred in law and on facts....

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....licensed patents and know-how for manufacturing of licensed products and accordingly it is not liable to pay royalty charge to the owner of the intangibles i.e. the AE Sony Corp under the Rules for A.Y 2015-16, 2017-18 and 2018-19? F. Whether the Hon'ble ITAT has not erred in its decision to rely on the decision of the Hon'ble Delhi High Court in the case of Cushman and Wakefield (ITA 475/2012) whereas the issues involved in this case are different from that of the assessee's case as arm's length price of the international transaction related to payment of royalty has been determined by the TPO within the authority as prescribed under section 92C of the Income Tax Act, 1961 for A.Y 2015-16, 2017-18 and 2018-19? ....

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....alien to the statutory provisions, cannot be adopted. 6. Adverting to the remaining questions (i.e question Nos. B to F) relating to royalty payment, learned counsel for the respondent submitted that the Tribunal's order deals with following two aspects:- (i) Whether the transfer pricing adjustment is required to be made in respect of royalty payment? (ii) And if yes, what should be the method of calculation and quantum of royalty for such adjustment? 7. Mr. Puneet Rai, learned Senior Standing Counsel for the Income Tax Department was not in a position to dispute the position that aspects have been decided in ITA No. 551/2023 vide judgment dated 30.09.2024 and 7/2023 decided on 13.12.2023. He could not bring to our n....