2024 (3) TMI 1379 - HC - Income Tax

TP Adjustment - Royalty and payment of Technical fee paid by the respondent/assessee to its Associated Enterprise (AE) - HELD THAT - Appellant, on instructions apprises us that although the aspect of royalty may have constituted the subject matter of the AYs as noticed by us hereinabove, the issue of technical know-how fee did not form the subject matter of consideration in AYs 2011-12, 2012-13 and 2013-14. We note that undisputedly in AY 2010-11, both aspects were duly examined by the DRP. The direction as framed by the DRP in terms of the statutory regime which prevails would clearly bind the Assessing Officer. No justification to entertain the instant appeal. Consequently, we see no reason to interfere with the impugned order of the ITAT. The present appeal stands dismissed on the aforesaid terms.

Summary

The High Court dismissed the appeal by the Principal Commissioner challenging the ITAT order regarding royalty and technical fee adjustments. The court found no reason to interfere as the DRP's direction in AY 2010-11 binds the Assessing Officer. The appeal was dismissed.