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TMI Blog2012 (7) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction - Once it is accepted that the ALP of the royalty is justified, there can be no reduction in the value thereof on account of the assessee's customers failing to pay the assessee for the product purchased by them from the assessee. Transactions between the respondent and CAMI are unrelated to the transactions between the respondent and its clients i.e. purchasers of the products from the respondent. CAMI was not concerned with the respondent's inability to recover the consideration from its clients. It is not suggested that the transactions in this case either between the respondent and CAMI or the respondent and its clients are colourable - in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... to CAMI. The respondent claimed the ALP at the contractual value of about Rs.7.43 crores. The AO computed the ALP of the royalty at about Rs.5.85 crores resulting in a reduction of loss of about Rs.1.50 crores. 5. The respondent's appeal was rejected by the CIT (A). 6. It is pertinent to note that the TPO by the order under section 92CA(3) observed that the respondent's contention regarding the rate of royalty being justified was not relevant, as there was no dispute regarding the same but that the issue was whether the royalty should be allowed to be written off to the extent of the unpaid invoices during the year itself. This, we presume, refers to the bad debts in respect of some of the invoices raised by the respondent on its custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... method, having regard to the nature of transaction or class of transaction or class of associated persons or functions performed by such persons or such other relevant factors as the Board may prescribe, namely :- (a) comparable uncontrolled price method ; (b) resale price method ; (c) cost plus method ; (d) profit split method ; (e) transactional net margin method ; (f) such other method as may be prescribed by the Board. (2) The most appropriate method referred to in sub-section (1) shall be applied, for determination of arm's length price, in the manner as may be prescribed: " 9. Section 92C provides the basis for determining the ALP in relation to international transactions. It does not either expressly or impliedly consider fai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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