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TMI Blog2012 (12) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... a justifiable and reasonable business expenditure and thus should be allowed u/s 37 of the Act - Transfer Pricing Officer after detailed analysis and examination of the material on record concluded that pricing adjustment was unnecessary; therefore, the application of this amendment, made later, to the facts of this case especially in a context in which they have arisen, is academic - no substantial question of law arises, in these circumstances the appeal is dismissed. Decision in COMMISSIONER OF INCOME TAX Versus M/S NESTLE INDIA LTD [2011 (5) TMI 566 - DELHI HIGH COURT] followed. - ITA 644/2012 - - - Dated:- 21-11-2012 - MR. S. RAVINDRA BHAT MR. R.V. EASWAR JJ. Appellant: Mr. Sanjeev Sabharwal, Sr. Standing Counsel with M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of royalty and advertisement and sales promotion expenses are reasonable. Their reasonableness can be examined by the Assessing officer under other provision is ions on the Income Tax Act. On perusal of the observations made by the TPO, it is evident that the assessee is helping the parent company to enhance the brands value in India and it is attributable to the marketing efforts by the assessee s. The OECD guidelines also propounds that the actual conduct of the parties over a period of years should be given significant weight in evaluating the return attributable to market activities. As such, it is evident that license fee paid by the assessee cannot be completely attributed to have been expanded wholly and exclusively for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court. Looking to the earlier decisions in this case, which we are bound to follow, it is held that the ld. CIT (Appeals) rightly deleted the addition of Rs.33.82 crore by relying on earlier orders of the Tribunal. 4. This Court notices that the Tribunal placed reliance upon the decision, of the assessee itself, of this Court i.e. CIT v. Nestle India Ltd., (2011) 337 ITR 103 (Del.) pertaining to assessment year 2005-06 where an almost identical question had arisen. This Court had taken note of a similar approach as noticed by the Tribunal in the impugned order and observed as follows: - 5. As the facts and circumstances during the year under consideration are in pari-materia and a view has already been taken by the coordinate Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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