9911796707
TMI Blog2015 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ity in the orders of the lower authorities. Since assessee has failed to provide any corroborative evidence in this behalf, the adjustment of ₹ 31,01,476/-made by the lower authorities cannot be found fault with. The same is upheld. Addition on account of alleged suppressed sales of scrap - Held that:- In our considered view the approach adopted by DRP is unsustainable in as much as it has the power to issue necessary direction on the basis of material available on record. There is no gainsaying by shrugging off the decision on the pretext of not being an appellate authority. Adverting to AO’s observation, assesses books are upheld, no evidence at all has been indicated to form even a suspicion that assessee indulged in any type of suppression of sales. Thus the finding is nothing but an assumed allegation. Never in past or future the assess’s scrape sales have been question. The addition being presumptive and based on conjectures is deleted. This ground is allowed. Not allowing the claim of inventories written off - Held that:- We have heard the rival contentions and perused material on the record. ITAT in assesssee’s own case has allowed the similar claim of inventory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1 Making an adjustment of ₹ 2,55,82,075/- u/s 92C(3) comprising of payment made in respect of business services received of ₹ 2,51,97,157/- and mark up of ₹ 3,84,918/- on reimbursement of advertisement expenses of ₹ 31,04,176/-. TP adjustment are further challenged on following counts:- i) TPO s proposed adjustments proposed in order u/s 92CA(3) dated 27.10.2010 has been relied without making any independent examination of facts by AO and section 92C(3) has been misapplied by summarily rejecting assessee s TP study. ii) Ld. TPO grossly erred in holding that assessee has not proved any need for services outsourcing such services and actually services were received by assesse. Thereby re computing the ALP of the payments of service fees at Rs. NIL resulting into adjustment of ₹ 2,51,97,157/- iii) Erred in holding that payment of ₹ 31,04,176/- was not actual reimbursement of advertisement expenses making ALP adjustment of the transaction by applying operating margin of ₹ 12.40% on the said amount resulting into adjustment of ₹ 3,84,918/-. iv) The Ld. DRP has also erred on facts and in law in summarily holding that issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the AE i.e. no. 7 above and proposed to make following adjustments: Sr. No. Nature of International Transaction Adjustment Value (Rs.) 1 Receipt of Business Support Services 25,197,157 2 Reimbursement of Advertisement Expenses 384,918 Total 25,582,075 2.3. Assessee filed its objections in this behalf u/s 144 to the Dispute Resolution Panel, assessee claims that DRP without considering the detail submission and independent examination of facts, summarily upheld the action of AO/TPO. Aggrieved assessee is in appeal before us on the final assessment order passed consequent to DRP directions u/s 144C. Ld. Counsel contends that: i. Procter Gamble, USA (P G) acquired the Gillette Company, USA on 01.10.2005, as a result of which, assessee company was also acquired by them. As a result of this worldwide acquisition, assessee integrated its accounting and other systems w.e.f. 01.07.2006 and following such system integration, it a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Relocation and Expatriate Services Compensation Planning Services Employee Benefits Administration Employee Data Management Travel Services Customer Logistics Financial Services Management of trade customer orders and receivables, credit risk, promotion funds, transportation and other logistics and financial services Purchases Suppliers relationship management and strategy etc. Business Intelligence Services Consumer, customer, competitor research and general business intelligence Information Technology Business Solutions Manufacturing execution, engineering, warehouse management etc. Workplace Services Workplace maintenance Technology infrastructure Other Services Rendering of any other services In consideration of availing services from Global Business Services (GBS) Centre, the TPO made following unjustified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 9,68,246/- (ii) Reimbursement of advertising expenses, ₹ 95,28,427/- ii. The TPO in the proceedings observed that details of reimbursement of advertisements of ₹ 64.24 Lacs have been furnished, for remaining amount of ₹ 31.04 Lacs, instead of filing details it was claimed that these are of similar nature as that of ₹ 64.24 Lacs. Consequently it was inferred that the amount in question was not a cost reimbursement, but some sort of receipt for assumed intra group service . For such assumed services ld. TPO held that TNMM with a cost plus profit margin (OP/TC) as PLI was the most appropriate method. Considering some comparables the ALP was computed as follows: Cost borne by assessee ₹ 31,04,176/- Arms Length Operating Margin @ 12.4% ₹ 3,84,918/- Arm s Length Price ₹ 34,89,094/- Accordingly, a transfer pricing adjustment of ₹ 3,84,918/- was proposed. iii. The DRP directed the TPO to verify the nature of payment of ₹ 31.04 Lacs from the evidence produced by assessee. If it is reimburseme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces in actual cost vis-a-vis the budgeted cost would be charged / credited to the service recipient accordingly. Methodology of performance services at various places is narrated at Page31 32 of Form 35A. For these services AE was compensated at cost plus 7% margin and the Debit notes in this behalf are also on the record, which are not disputed. The summary of the invoices raised by AE for services rendered, tax withheld and remittance made is as under: Amounts in USD The mark up of 7% charged by AE is reasonable which is evident from the profit loss statement of AE from the year ended 30th June 2007 which shows net profit before tax at $ 12035 (13249 1214) on revenue of $ 292553 (291971 + 582) giving net margin of 4.13%. This margin is less than the mark up charged from assessee which indicates that services are rendered by the AE on cost to cost basis. Besides the withholding tax is borne by AE. Evidence as to the services rendered by AE in shape of Electronic Vouchers prepared by the employee of AE along with his name and code with reference to Travelling Expenses, dividend payment, costing variance entries, capitalisation entry, depreciation, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09-10 F Y 2008-09 AY 2008-09 FY 2007-08 AY 2007-08 F Y 2006-07 A Y 2006-07 F Y 2005-06 Gross Turnover 650.28 598.49 525.45 412.14 Expenses as % of Gross Turnover Percentage ( % ) Payment to and Provisions for Employees 6.66 6.58 6.42 10.30 Travelling, Conveyance and Vehicle Expenses 0.53 0.70 1.08 2.41 Communication Expenses 0.09 0.08 0.23 0.57 Purchase Services 0.12 0.14 0.49 2.32 Other expenses 0.49 0.24 1.28 2.47 These figures demonstrate that the expenses on Employees cost has shown decrease from 10.30% in yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Ld. TPO is grossly unjustified in taking this view as in the TP Study the arithmetic mean of the comparable service provider in India is computed at 12.40%. Further the AO himself has considered the margin of 12.40% as reasonable in respect of adjustment made by him for reimbursement of expenses. Therefore the mark up of 7% charged by the AE is at lower to mark up of 12.40% charged by benchmarked service providers. (ii) As far as the benchmarking of the transaction by AE is concerned, AE (Service Provider) has the policy of charging a mark-up of 7% from all the service recipients on the total operating cost for the various services it provides. For determining the range of profitability for service mark ups that will be applied to intercompany charges for different services, Procter Gamble Company (P G) has got done the economic analysis which was duly submitted in the form of report dated 30th March 2001. This analysis has been done in accordance with the applicable TP regulations and the Organization for Economic Cooperation and Development (OECD) Guidelines. As per this study, mark up of 7% is considered to be in consistent with the global, regional and segment resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O cannot after a consideration of the facts state that the ALP is nil given that an independent entity in a comparable transaction would not pay any amount. However, this is different from the TPO stating that the assessee did not benefit from these services, which amounts to disallowing expenditure. That decision is outside the authority of the TPO. - This is a slender yet crucial distinction that restricts the authority of the TPO. Whilst the report of the TPO in this case ultimately noted that the ALP was nil , since a comparable entity would pay nil amount for these services it was noted that remarks concerning, and the final decision relating to, benefit arising from these services are properly reserved for the AO. - In this case, the issue is whether an independent entity would have paid for such services. Importantly, in reaching this conclusion, neither the Revenue, nor this Court, must question the commercial wisdom of the assessee, or replace its own assessment of the commercial viability of the transaction. The services rendered by CWS and CWHK in this case concern liaising and client interaction with IBM on behalf of the assessee- activities for which, accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice. (j) Lower ongoing investment required in internal infrastructure.(k) Greater ability to control delivery dates (eg: via penalty clauses)(l) Lack of internal expertise(m)Increase flexibility to meet changing business conditions.(n) Purchase of industry best practice. (o)Improve risk management.(p)Acquire innovative ideas. (q) Increase commitment and energy in non core areas. Improve credibility and image by associating with superior providers. (s) Generate cash by transferring assets to the provider. (t)Turn fixed costs into variable costs.(u)Gain market access and business opportunities through the supplier s network etc... Keeping in view the above factors and also the Group policy of outsourcing the routine natured jobs, the assessee company outsourced its activities. (vii) Besides decision for outsourcing methodology of certain routine activities was taken after considering the global business trends and future goals which is the sole domain of assessee based on a very settled and widely accepted legal principle that business entities only best know, how to conduct their business keeping in view its needs, prudence and business acumen. Tax authorities or any other out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted. B. REIMBURSEMENT OF ADVERTISING EXPENSES ₹ 3,84,918/- 3. Assessee received reimbursement of advertisement expenses of ₹ 95,28,427/- Lacs comprising of an amount of ₹ 64,24,251/- from Gillette, Boston in respect of GBU Television production commercial Film and ₹ 31,04,176/- also from Gillette Boston. In respect of the amount of ₹ 64,24,251/-, assessee furnished the invoices and accordingly the same is accepted by AO/TPO as reimbursement of expenses. 3.1. However in respect of the remaining amount of ₹ 31,04,176/- which is also the reimbursement of cost of production film, as explained vide letter dated 08.10.2010 the copy of invoice could not be furnished as the same was misplaced but the copy of the ledger account was furnished where the amount of ₹ 64,24,251/- is also debited to evidence that nature of the reimbursement of ₹ 31.04 Lacs is the same as that of ₹ 64.24 Lacs. 3.2. The DRP, considering this fact directed the TPO to verify the nature of this payment from the evidences produced by the assessee as if this is reimbursement then to treat it on par with ₹ 64.24 Lacs. 3.3. The TPO, again held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, there should be a mechanism in place which can identify (i) the cost incurred by the AE in providing the intra group services and (ii) the basis of allocation of cost to various AEs. (4) Whether a comparable independent enterprise would have paid for the services in comparable circumstances. Reliance is placed on VVF LTD. (2010)-TIOL-55(MUM) holding that: 6. On a conceptual note, the purpose of making arms length adjustments, in prices at which transactions have been entered into with associated enterprises, is to nullify the impact of interrelationship between the associated enterprises. Unless the method on the basis of which such hypothetical prices are computed is such that costs are to be taken into account, these hypothetical prices have nothing to do with the actual costs. CUP method seeks to ascertain arms length price by taking into account prices at which similar transactions have been entered into by the assessee with unrelated parties (Internal CUP) or at which other unrelated parties have entered into similar transactions inter se (External CUP). None of these inputs have anything to do with the costs; they only refer to prevailing prices in similar unre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s charged any mark up on such payments the arm s length margin is also examined. 4.1. It is further pleaded that in following cases the ITAT has upheld determination of ALP of intra group services as NIL :- Gemplus India Pvt. Ltd. Vs. ACIT, Bangalore in ITA No. 352/Bang/2009 (2010-TII-55-ITAT-BANG-TP). Deloitte Consulting India Pvt. Ltd. Vs. DCIT in ITA Nos. 3910 3911(MUM) of 2009 579, 1272 1273 (MUM) 2011. Nike India (P) Ltd in ITA Nos. 653 654 (BANG.) OF 2011. M/s. Knorr-Bremse India Pvt. Ltd in ITA No. 5097/Del/2011. M/s. Petro Araldite Pvt. Ltd in ITA No. 6217/Mum/2012. For other grounds, the ld. D/R relied on the orders of TPO/AO/DRP. 5. We have heard the rival contentions and perused the material available on the record on this issue. It emerges from the record that assessee submitted following documents :- (1) Business services agreement vide its submission dated 27 January 2010. (2) Detailed break-up of services rendered by Singapore Philippines. (3) Balance Sheet and Profit Loss Account of P G Singapore. (4) Similar services were provided by the AE to other Indian P G affiliates. (5) Ledger account of the AE (P G Singa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is otherwise discernible from the facts. The questioned judgement also takes in stride the fact that the quantum of benefit availed by the assessee in terms of its business yields cannot be questioned as in cases it may so happen that the services though availed does not yield into any ostensible benefit. Whereas in this case assessee has been able to demonstrate that there are ostensible benefits. Thus this proposition also fails under the domain business acumen of the assessee. Considering all the facts as narrated above and the case laws, we may further add that there is no whisper by lower authorities that the ALP work provided by the assessee suffers from any infirmity. It is not proper to go for an ALP ascertainment without finding any fault with the assessee s working. The TP services provide that the AO himself first record its objections on the merits of the working of the assessee. Without doing so, the ALP determination becomes a questionable exercise. In the entirety of facts and circumstances we hold that the TP adjustment to the ALP as furnished by the assessee is without any justification. The same is deleted. 5.3. Apropos the issue about the reimbursement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts: i. 99% of scrap sale at manufacturing location consist of process scrap which gets generated during the process of manufacturing. It also includes sale of waste generated during repair and maintenance of plant machinery. ii. The process scrap is in the form of aluminium scrap, stainless steel scrap burnt / slug, plastic scrap, platinum scrap, generated in production process. iii. As and when scrap gets generated, it is sent to the scrap yard with intimation to warehouse. iv. At warehouse data is maintained for opening balance of scrap, scrap generated during production, month wise. As and when scrap is sold through invoice, entry of dispatches is made. v. Month wise detail of scrap sale was furnished. The details of scrap sold in earlier years, which is accepted by the A O was filed. The scrap sold during the year is comparable to the stock sold in earlier years. Stock of scrap at the year end is not valued considering the materiality of the amount involved which was demonstrated by providing the amount of scrap sold in April 2007 which is of ₹ 5.35 Lacs. Nothing adverse was found by the A O in the details furnished before him. 6.3. The AO in para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition proposed by the AO in this regard. Both the authorities have also erred in making various observations which is not correct on facts also not deleting the addition when it has been decided by Hon ble ITAT in favour of assessee in earlier years. 8. Brief facts are - assessee company being in the fast moving consumer goods, the obsolescence and expiry of stock is quite normal. The company as a regular practice writes off its obsolete and expired stock. During the year under consideration the assessee company has written off inventories of ₹ 91,83,353/-. Assessee vide letter dated 23.12.2010 explained the company procedure for write off and further explained that periodical and regular physical verification of inventory is carried out as per laid down procedure by company officials. After due diligence and necessary approvals, the identified items of inventories are written off from the books of account. For ready reference inventory write off sheet, duly approved by VC, Operations Manager, Director, FPM, FC and GM of the company giving complete item wise, material code wise, quantity and value sheet of inventories written of during the year was submitted as anne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 2005-06 3.70 453.56 0.81 2006-07 8.28 383.43 2.15 2007-08 0.92 493.57 0.19 The write off s have been fully allowed as deduction upto AY. 2001-02. In assessment year 2003-04 also the amount of inventory written off was allowed by CIT(A) vide their order dated 24.01.2007 but claim for obsolescence, stock shortage sample was not allowed. Against the order of CIT (A) both assessee and the department preferred appeal before ITAT. Hon ble ITAT in ITA No. 188/JP/07 dt. 09.08.2010 dismissed the appeal of the department by allowing the claim of inventory written off. Again Hon ble ITAT in ITA No. 1234/JP/2010 dated 11.2.2011 for A Y 2005-06 in para 11 of the order allowed the claim of inventory written off. 8.5. The assessee company is engaged in the business of manufacture and trading of FMCG items and any unserviceable, damaged and obsolete inventory items have to be taken off from the regular stock items. The market value of such stock becomes NIL on its gett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on following cases: J. C.I.T. Vs. ITC Ltd. 299 ITR (AT) 341(SB)(Cal.): CIT Vs. Alfa Leval (India) Ltd. 295 ITR 451 (SC): 8.9. In the present case, the assessee has actually written off the inventory of ₹ 91,83,353/- by identifying the damaged / obsolete items. This is also the regular practice of the assessee. In any case since stock are valued at cost or market price whichever is lower and these inventory has no value, the same is to be allowed to the assessee in view of the accounting principles and the ratio laid down by Hon ble Supreme Court. CIT Vs. Hotline Teletube and Components Ltd. 175 Taxman 216 (Del.): Provision for diminution in value of stock is allowable as business loss. 8.10. In view of above, it is contended that asessee s claim of inventory written off is fully allowable. 8.11. Ld. DR relied on the orders of authorities below. 9. We have heard the rival contentions and perused material on the record. ITAT in assesssee s own case has allowed the similar claim of inventory write off in AYs 2003-4 to 06-07. Besides considering the facts and the judicial precedent cited above we see no justification in disallowing the claim of inventory wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70,820 70,820 State Sales Tax 1,04,71,902 8,01,057 Insurance 82,641 Nil Repair Maintenance Others 2,200 20,305 Advertisement 2,73,060 Nil Freight Transport 23,47,566 28,78,878 Travelling Conveyance 28,65,137 30,98,315 Communication Expenses 35,950 66,174 Purchase services 51,83,184 8,73,738 Conference Expenses Nil 43,43,282 Trade Incentives Nil 1,34,06,436 Employees relocation Nil 53,48,962 House Support Nil 2,10,66,873 Training / Travel Nil 66,41,842 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account is not relevant for allowance of expenditure. Whether assessee is entitled to a particular deduction or not will depend on the provision of law relating thereto and not on the view which the assessee might take of his rights nor can existence or absence of entries in the books of account is decisive or conclusive in the matter as held by Supreme Court in Kedarnath Jute Mills (82 ITR 363) and Sutlej Cotton Mills (116 ITR 1). 11.2. Expenditure incurred on ground of commercial expediency to facilitate carrying on of the business is allowable as revenue expenditure. By incurring the above expenditure, the assessee has not derived any enduring benefit. Of course, these are one time expenditure for restructuring to be incurred over a period of 18 to 24 months, they do not result into creation of any asset, but only facilitate in the efficient working of the assessee. Hence such expenditure are allowable as business expenditure u/s 37(1). Further reliance in this connection is placed on: CIT vs Madura Coats Ltd [2003] 263 ITR 0241.(Madras). Dalmia Jain Co. Ltd. v. CIT [1971] 81 ITR 754 (SC) Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC) Alembic Chemical Work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee also claimed Trade Incentives expenses of ₹ 27,07,86,281/-, month wise details thereof were furnished vide submission dated October 28, 2010. Grouping of these expenses into three major categories is as under: Incentive / Scheme reimbursement expenses ₹ 11,30,94,452/- Temporary price reduction ₹ 2,80,28,897/- Damage concession ₹ 12,96,62,932/- Total ₹ 27,07,86,281/- 13.1 The A O in the draft assessment order made following observations: The assessee was required to deduct ₹ 43,55,175/- u/s 194C in respect of amount paid to M/s. Madison Communications Pvt. Ltd. (1.133% of ₹ 38,43,93,204/-). As against this tax deducted is only ₹ 37,45,205/-. Thus tax was short deducted by ₹ 6,09,970/-. This was converted into the amount of payment at ₹ 5,38,36,717/-(Rs. 6,09,970 * 100 / 1.133). Since assessee has already disallowed ₹ 5,13,22,323/- in respect of this party, disallowance of ₹ 25,14,394/- was further made u/s 40(a)(ia). In respect of paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ented purchases of articles like display units, wall units, floor stands, posters, banners etc., on which VAT was paid. Being article purchase there is liability of TDS thereon. Assessee made available complete record and random sample bills demonstrating that amount of ₹ 13,17,51,694/- represented purchase of material. Hence the disallowance made u/s 40(a)(ia) is unjustified and uncalled for. 14.1 Apropos trade incentive expenditure to distributors amounting to ₹ 27,07,86,281/-, these payments are categorized into the following heads: Incentive / Scheme Reimbursement exp. 11,30,94,452/- Temporary price red. 2,80,28,897/- Damage Concession 12,96,62,936/- Total 27,07,86,281/- The nature of expenditure debited under this head was duly explained vide letter dated 20.12.2010 as under: Local Promotion expenses representing expenses incurred on payment of endorsement charges to celebrities, promotional activities carried out in malls, stage events, display dum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Asstt. CIT (2001) 70 TTJ (Pune) 77 [see also Dy. CIT vs. Reebok India Co. (2006) 100 TTJ (Delhi) 976; Bangalore District Co-op. Milk Producers Societies Union Ltd. vs. ITO (2007) 11 SOT 539 (Bang.); Dy. CIT vs. Seagram Manufacturing (P.) Ltd. (2008) 19 SOT 139]; Andhra Pradesh State Road Transport Corporation vs. DCIT (2002) 74 TTJ (Hyd.) 531]; ITO Vs. Dr Willmar Schwabe 3 SOT 71. 14.3. It is contended that though the DRP has observed that assessee has explained how TDS is not attracted on many of the expenditure or attracts lower rate of TDS. Instead of deleting the disallowance it merely directed AO to again verify the applicability of correct TDS provisions, thus putting the assessee to disadvantageous condition which is explicit from the fact that AO repeated the additions. Legally sec. 144C(8) specifically provides that DRP may confirm, reduce, or enhance the variation proposed in the draft order, which clearly implies that it shall not set aside any proposed variation or issue any direction under sub. sec.5 for further enquiry while passing the final assessment order. It denies the assessee a lawful opportunity of agitating his grievance again before DRP, which is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gillette, Singapore, subsidiary of Gillette, USA and Mindshare, Singapore indicates that assessee is receiving services other than included services in term of DTA between India and USA. Gillette, USA has a PE in India as the administrative office of the assessee is shifted to Mumbai in the premises of Proctor and Gamble and the overhead expenses are shared by the assessee. Therefore income of the Gillette, USA to the extent it is attributable to the operations carried out in India is taxable in India. 16.1 The assessee has not obtained certificate u/s 195 for no deduction of tax at source before making payment to Mindshare or Gillette, USA or any other associate enterprise which could represent any income accruing or arising to those entities. Mindshare, Singapore is supervising the entire media arrangement for which the agreement has been entered into by one of the affiliate of the assessee. The assessee does not have any agreement with Group M Media Pvt. Ltd. The payment of ₹ 23,44,747/- made to Group M Media Pvt. Ltd. are on behalf of Mindshare, Singapore. Therefore the payment is covered u/s 195. Disallowance was proposed u/s 40(a)(ia). 16.2 The DRP has given the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious Indian TV Channels for advertising the product of the assessee company. Simply because there is no written agreement with M/s. Group M Media (India) Pvt. Ltd, the expenditure incurred by the assessee cannot be disallowed u/s 37 when the factum of services rendered and payment made to it is not in dispute. 16.7. The DRP has simply confirmed the disallowance by observing that in the last year, similar disallowance made by the assessee is upheld by DRP. The DRP has not considered the arguments of the assessee that M/s. Group M Media (India) Pvt. Ltd. is a resident company and not non-resident or foreign company. 16.8. Ld. DR relied on the authorities below. 17. We have heard the rival contentions and perused the material available on record. After DRP order and during the pendency of this appeal ITAT passed order for AY 2006-07 vide order dated 28-02-2014 holding advertisement payment to Group M Media as covered by sec. 194C and not u/s 195 by following observations :- 6.3. After considering the rival submission, we find that Group M Media India Pvt. Ltd. Is an Indian co. as is evident from the company master details placed at Paper Book Page 17. From the same, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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