Held, that in terms of the Tribunal’s decision in the assessee’s own case, the Transfer Pricing Officer was directed to quantify the royalty at nil for D-Nepal and at 0.75 percent of freight on board sales, for both D-UAE and ACC. Further, the service fee was directed to be restricted to 0.30 percent. instead of the ad hoc rate of 0.513 percent proposed by the Commissioner (Appeals). (AY. 2010-11, 2011-12).
Dabur India Ltd. v. Dy. CIT (2023)101 ITR 148 (Delhi) (Trib)
S. 92CA : Transfer pricing-Reference to Transfer Pricing Officer-Arm’s Length price-Avoidance of tax-Royalty-Assessee earning brand royalty from associated enterprise-Royalty to be quantified in terms of order for earlier years-Service fees at Ad hoc rate to be restricted.