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TMI Blog2024 (8) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... endent agreement. ITAT has spelt out the difference between two agreements and also the law as prevailing. One of the factors which has influenced the ITAT to arrive at the conclusion that the old agreement provided the trademarks to be used by assessee were only restricted to Ape 501 and Ape 601, whereas, as per the new agreement assessee has provided the license to manufacture and sell the vehicles under the name of Ape, which encompasses all kinds of vehicles. ITAT also has considered the fact that assessee in view of the extended license provided also launched Ape city diesel of three wheelers under Ape brand which was different from Ape 501 and Ape 601 brands, which it could not have done under the old agreement. The ITAT also observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee received royalty income and technical fees for the services rendered in India to its AEs namely Piaggio Vehicles Pvt. Ltd. Since the international transactions were above Rs.15 crores the case was referred to the Transfer Pricing Officer (TPO). The order u/s 92CA(3) of the Income Tax Act 1961 (the Act) was passed on 09th January 2015 and no adjustment was made to the value of international transactions of the assessee. Various issues came up for consideration but the appeal is restricted to the application of tax under Section 115A of the Act. The assessee and its AEs had entered into an agreement dated 26th March 1998 valid for a period of 10 years. The parties entered into another agreement dated 1st April 2008 for a period of 10 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evailing. One of the factors which has influenced the ITAT to arrive at the conclusion that the old agreement provided the trademarks to be used by assessee were only restricted to Ape 501 and Ape 601, whereas, as per the new agreement assessee has provided the license to manufacture and sell the vehicles under the name of Ape, which encompasses all kinds of vehicles. The ITAT also has considered the fact that assessee in view of the extended license provided also launched Ape city diesel of three wheelers under Ape brand which was different from Ape 501 and Ape 601 brands, which it could not have done under the old agreement. The ITAT also observed that the territory which was covered under the old agreement was different from the territor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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