ASB INTERNATIONAL P. LTD.,AMBERNATH vs. ADDL/JT/DY/ASSTT/CIT/ITO, NATIONAL E-ASSESSMENT CENTRE, DELHI

ITA 921/MUM/2021Status: DisposedITAT Mumbai25 August 2023AY 2016-1710 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the 'Other Method' is the most appropriate method for benchmarking the royalty payment due to the unique nature of the intangibles and lack of reliable comparables under the CUP method. The matter was remanded for fresh examination of the assessee's working based on the 'Other Method'.

What were the facts?

The assessee, a wholly owned subsidiary, paid royalty to its foreign parent company. The Transfer Pricing Officer (TPO) and Dispute Resolution Panel (DRP) rejected the assessee's benchmarking of royalty payments and made an addition to the total income.

What were the issues?

Whether the Comparable Uncontrolled Price (CUP) method or the 'Other Method' is the most appropriate method for benchmarking royalty payments for unique intangibles, and whether the assessee's benchmarking under the 'Other Method' is acceptable.

Which sections of the Income-tax Act were involved?

Section 92C,Section 92AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘K‘ BENCH

Before: SHRI AMIT SHUKLA & SHRI AMARJIT SINGH

For Appellant: Shri Paras Savla / Shri, Shri Pratik, Ms. Akshita
For Respondent: Shri Asif Karmali
Hearing: 31/05/2023Pronounced: 25/08/2023

PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against final assessment order dated 28/03/2021 passed u/s.143(3) r.w.s. 144C(13) in pursuance of direction given by the DRP dated 04/03/2021 u/s.144(5).

2 M/s. ASB International P. Ltd.

2.

In the grounds of appeal, assessee has raised the following grounds:-

On the facts and circumstances of the case and in law, the learned Transfer Pricing Officer (TPO)/ the learned Assessing Officer (AO') under directions of the Hon'ble Dispute Resolution Panel (DRP) erred in making an addition of

The order continues below.

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