Indian tribunal favours taxpayer over arm’s length payment of royalty for technical services
December 08, 2010
Sophie Ashley - TPW
The Delhi Income Tax Appellate Tribunal upheld, in the case of Abhishek Auto Industries, the company’s arm’s-length justification of the payment of a royalty fee for technical know-how and assistance to a manufacturing entity.
The tribunal further ruled that the income tax department cannot intervene in the commercial activities of an inter-company agreement.
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