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| The Tax Publishers2020 TaxPub(DT) 0382 (Mum-Trib) INCOME TAX ACT, 1961
Section 92C
Rejection of benchmarking report submitted by assessee was not sustainable, in case, TPO had any doubt about authenticity of document, same could have very well inquired from address and phone number mentioned therein. Hence, in the interest of justice, issue was remitted to TPO to consider the same afresh.
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Transfer pricing - Determination of ALP - Payment of roaylty to AE - Rejection of benchmarking report submitted by assessee and determination of nil ALP by TPO
Assessee claimed deduction of royalty paid to its AE abroad. TPO determined ALP thereof at nil. Assessee submitted that as per Reserve Bank of India Guidelines, royalty @ 5% to 8% can be paid and rate prescribed by RBI could be considered as CUP. Also, assessee furnished benchmarking report. However, TPO did not accept submissions of assessee.Held: Rejection of benchmarking report submitted by assessee was not sustainable. In case, TPO had any doubt about authenticity of document, same could have very well inquired from address and phone number mentioned therein. Hence in the interest of justice, issue was remitted to TPO to consider the same afresh.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12 & 2013-14
INCOME TAX ACT, 1961
Section 4
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