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TMI Blog2019 (5) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... ich it had at the same time directed a remand. This Court had on 01.06.2018, in the assessee's appeal for the concerned year [ITA No.660/2018], directed as follows: "The Court has considered the submissions of the parties; the ITAT remitted for fresh reconsideration of the issue relating to advertising, marketing and promotion (AMP) expenses. Furthermore, it also, through stray sentences in the impugned order not premised on any reason in no manner observed that the benchmarking of international transactions pertaining to payment of royalty cannot be done by using comparables with transactions entered into between two foreign parties. This observation in the opinion of the Court is not warranted to. Having regard to the fact that all mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xxxx xxxx 25. Now coming to the single agreement which was found to be comparable by the assessee, This agreement was where the licensor is Motorola incorporation USA and the licensee is forward industries incorporation USA, the period of the agreement was January 2008 to March 2009 and services were trademark license fees for the use of Motorola signature and the M logo (Emsignia) where the payment of royalty was 7% of net sales. Therefore the assessee stated that this is the only agreement which is between 2 foreign parties, both from USA is the only comparable, hence applying CUP method, comparing transaction of its AE with that solitary transaction stated that it is transaction of payment of royalty is at arm'slength. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipment manufacturers in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Forward Industries, Inc. was founded in 1954 and is headquartered in West Palm Beach, Florida. 30. In view of this, the transfer pricing study document prepared by the assessee for benchmarking the royalty payment does not inspire any confidence but merely eyewash. xxxx xxxx xxxx xxxx 32. Though the honourable High Court has directed us to determine the arm's length price of the royalty payment, however very kindly looking at the complexity of the issue, honourable High Court was also pleased to authorize the coordinate bench to carry out necessary enquiries and if need be to resort to a limited remand to the learned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer we direct the assessee to submit a fresh comparability analysis before the learned transfer pricing officer justifying the use of various database with the rationale for using them, justifying each and every filter that assessee would like to use, justify the various differences in the prices and it is adjustment to be made and all the necessary details before the learned transfer pricing officer on or before 15/04/2019. The learned transfer-pricing officer will also examine them, also make his own determination of ALP of Royalty on or before 05/05/2019, and seek any explanation/submission clarification on or before 22nd of May 2019. Based on examination and on his finding on the submission of the assessee, ld TPO/AO is directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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