CABOT INDIA LTD,MUMBAI vs. DCIT 1(1), MUMBAI

ITA 1842/MUM/2016Status: DisposedITAT Mumbai21 August 2023AY 2006-0730 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal set aside the issue of benchmarking royalty payments back to the Assessing Officer for determination of the most appropriate method. Regarding depreciation on retired assets, the Tribunal upheld the DRP's decision to allow the claim, following a jurisdictional High Court ruling.

What were the facts?

The assessee, Cabot India Ltd., engaged in the manufacture of carbon black, paid royalty to its associated enterprise. The Transfer Pricing Officer (TPO) determined a lower arm's-length royalty rate for carcass grade carbon black than what was paid by the assessee. The assessee also claimed depreciation on retired assets.

What were the issues?

The key issues were the benchmarking of international transactions for royalty payments and the allowability of depreciation on assets retired from use but not yet sold.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 143(2),Section 144C(13)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “K” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI RAHUL CHAUDHARY, JM

For Appellant: Mr. Percy J Pardiwala Sr Adv, Mr. Jeet Kamdar, Adv
For Respondent: Ms. Samruddhi Hande, Sr.AR
Pronounced: 21.08.2023

Heard together (3 matters)

ITA No. 2539 /MUM/2014
ITA No 6318/MUM/2016
ITA no 2586/MUM/2016

Read from the judgment's own cause title. This page is filed under one of them.

PER BENCH

01.

This is the bunch of 8 appeals in case of Cabot India Ltd (the assessee/appellant) for several years starting from assessment ye

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 92CA

All 3,978 judgments and leading authorities on Section 92CA →

Recent GST High Court judgments

Search GST case law →