{"id":41201,"date":"2024-04-02T15:30:10","date_gmt":"2024-04-02T10:00:10","guid":{"rendered":"https:\/\/itatonline.org\/digest\/l-g-electronics-india-p-ltd-v-asst-cit-2023101-itr-184-delhitrib\/"},"modified":"2024-04-02T15:30:10","modified_gmt":"2024-04-02T10:00:10","slug":"l-g-electronics-india-p-ltd-v-asst-cit-2023101-itr-184-delhitrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/l-g-electronics-india-p-ltd-v-asst-cit-2023101-itr-184-delhitrib\/","title":{"rendered":"L. G. Electronics India P. Ltd. v.Asst. CIT (2023)101 ITR 184 (Delhi)(Trib)"},"content":{"rendered":"<p>Held that advertisement, marketing and Sales promotion Expenses is not international transactions.\u00a0 Reimbursement of\u00a0 expenses by Associated Enterprise voluntarily. Margin within range of\u00a0 \u00b1 Five Per Cent.-Transfer Pricing adjustment to be deleted. Royalty, Premium on licence fixed by Transfer Pricing Officer at 22 Per Cent. restricted to 10 Per Cent. of\u00a0 average rate of\u00a0 royalty of\u00a0 comparable cases-Average Rate of\u00a0 unadjusted royalty of\u00a0 comparables at 4.5 Per Cent. discounted with 10 Per Cent.-Arm\u2019s Length Rate of\u00a0 Royalty at 4.05 Per Cent. to be applied-Regional Overhead expenses allocated to assessee. Business expediency of expenditure cannot be considered by Assessing Officer. Expenses incurred for purpose of\u00a0 business of\u00a0 assessee in ordinary course of\u00a0 its\u00a0 business. Transfer Pricing adjustment in respect of\u00a0 allocation of Asian Regional Headquarter expenses not sustainable-Export Commission.\u00a0 Additional evidence showing overseas marketing network developed and maintained by\u00a0 Associated Enterprises and assessee was able to secure orders for exports overseas through network. Assessing Officer to examine additional evidence and decide issue afresh-Reimbursement or\u00a0 warranty service charges received from Associated Enterprises on cost-to-cost basis. Products Imported From Manufacturer And Ultimate Warranty Liability to be borne by manufacturing entity.Entire cost incurred in providing warranty services reimbursed by Associated Enterprises and no basis for assessee charging A Mark-Up-No Transfer Pricing Adjustment Warranted-Payment for design and development services rendered by Associated Enterprises. International Transactions aggregated for benchmarking Transfer Pricing Adjustment in respect of\u00a0 design and Development charges not warranted-Advance paid to Associated Enterprise for supply of\u00a0 Monitors written off\u00a0 as Associated Enterprise in liquidation and unable to refund advance. Write-Off to be allowed as trading loss and bad debt as advance given in ordinary course of\u00a0 business-Salary paid to expatriate employees. Allowable as deduction. Subsidies is\u00a0 revenue receipts. Royalty paid for right to use technology and know-How for manufacture and sale of\u00a0 goods is allowable as\u00a0 revenue expenditure. Export commission. Additional evidence.Matter remanded.Additional wages of\u00a0 new workmen.Workmen Who joined in preceding year and working for less than 300 Days whose employment equal to or\u00a0 more than 300 Days in relevant previous year.Directed to allow deduction.\u00a0 <em>(<\/em>AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C : Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Specified domestic transaction-Advertisement and sales promotion expenses-Reimbursement expenses-Royalty-Business expenditure-Allocation of expenses-Additional evidence-Bench marking of expenses-Advances written off-Subsidy-Royalty-workmen-Number of days. [S.4,  28(i), 36(1)(vii),37(1), 80JJAA, R. 10B(1)(a)]  <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41201","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aIx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=41201"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41201\/revisions"}],"predecessor-version":[{"id":41202,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41201\/revisions\/41202"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}