Royalty expense allowable when goods are sold to Associated Enterprise on principal-to-principal basis

IN THE INCOME TAX APPELLATE TRIBUNAL

The Relevant Text of the Order as follows :

7.17 Considering the facts of the case as mentioned elsewhere we are of the considered view that the assessee has successfully demonstrated not only the benefits but has also shown that the profitability is higher (as per the charts exhibited elsewhere). Considering the totality of the facts we have no hesitation in directing the AO / TPO to delete the impugned addition on account of export commission.

7.18 This ground is accordingly allowed.

9. The other issue relates to the claim of TDS. The AO is directed to allow the credit of the TDS as per the provisions of law.

10. As mentioned at the beginning since facts of A.Y.2013-14 and 2014-15 are identical, therefore, for the detailed reasoning given here in above the appeal of A.Y.2014-15 is also decided accordingly.

11. In the result, both the appeals filed by the assessee are allowed.

Order pronounced in the open court on 30.09.2020.