{"id":2241,"date":"2010-11-19T14:35:40","date_gmt":"2010-11-19T09:05:40","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2241"},"modified":"2010-11-19T14:35:40","modified_gmt":"2010-11-19T09:05:40","slug":"maruti-suzuki-india-vs-acit-supreme-court-high-courts-judgement-on-transfer-pricing-of-trademarks-brands-licensing-impliedly-reversed","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/maruti-suzuki-india-vs-acit-supreme-court-high-courts-judgement-on-transfer-pricing-of-trademarks-brands-licensing-impliedly-reversed\/","title":{"rendered":"Maruti Suzuki India vs. ACIT (Supreme Court)"},"content":{"rendered":"\n\n
Click here to download the judgement (maruti_suzuki_transfer_pricing_SC.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n

High Court\u2019s judgement on transfer pricing of trademarks & brands licensing nullified
\n<\/strong><\/p>\n

In Maruti Suzuki vs. ACIT<\/a><\/strong> 328 ITR 210 (Del), the Delhi High Court whilst remanding the matter to the TPO for fresh consideration inter alia held that if a domestic Associate Enterprise is mandatorily required to use the foreign trademark on its products, the foreign entity should make payment to the domestic entity on account of the benefit the foreign entity derives in the form of marketing intangibles from such mandatory use of the trademark<\/em>. Certain other far-reaching principles on transfer pricing of trademarks & brands<\/em> were set out. On appeal by the assessee, HELD disposing off the Appeal:<\/p>\n

\u201cIn this case, the High Court has remitted the matter to the Transfer Pricing Officer with liberty to issue fresh show-cause notice. The High Court has further directed the TPO to decide the matter in accordance with law. Further, on going through the impugned judgement of the High Court dated 1st July, 2010, we find that the High Court has not merely set aside the original show-cause notice but it has made certain observations on the merits of the case and has given directions to the TPO, which virtually concludes the matter<\/strong><\/em>. In the circumstances, on that limited issue, we hereby direct the TPO, who, in the meantime, has already issued a show-cause notice on 16th September, 2010, to proceed with the matter in accordance with law uninfluenced by the observations\/directions given by the High Court in the impugned judgement dated 1st July, 2010<\/em><\/strong>.\u201d<\/p><\/blockquote>\n

\nNote: See Also Coca Cola India Inc vs. ACIT<\/a><\/strong> where the judgement of the P&H High Court in 309 ITR 194<\/strong><\/a> was nullified in similar manner\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Judgement of the Delhi High Court in Maruti Suzuki vs. ACIT 328 ITR 210 (Del) on transfer pricing of trademarks & brands licensing nullified<\/p>\n

Read more ›<\/a><\/div>\n

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