COMMISSIONER OF INCOME TAX v. M/S LUXOTTICA INDIA EYEWEAR P. LTD - 2015-LL-1106-11

Citation	2015-LL-1106-11
Appellant Name	COMMISSIONER OF INCOME TAX
Respondent Name	M/S LUXOTTICA INDIA EYEWEAR P. LTD.
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	06/11/2015
Assessment Year	2009-10
Judgment	View Judgment
Keyword Tags	substantial question of law • transactional net margin method • transfer pricing
Bot Summary:	This appeal by the Revenue is directed against an order dated 5th November, 2014 passed by the Income Tax Appellate Tribunal in ITA No.1115/Del/2014 and 617/Del/2014 for the Assessment Year 2009-10. Three of the questions urged by the Revenue in the present appeal concern the deletion of additions made by the Assessing Officer on account of prior period expenses, provisions for warranty expenses and non deduction of TDS under Section 40(a)(ia) of the Income Tax Act, 1961. Proceeding entirely on the basis of facts, the Commissioner of Income Tax decided the said three issues in favour of the Assessee and that order has been upheld by the ITAT by the impugned order. As regards the above three issues, the Court is satisfied that no substantial question of law arises. 5A. The other issue is about the Assessee having shifted from the Transactional Net Margin Method to the resale price method as the most appropriate method for the purposes of determination of the arms length price. As regards the issue concerning AMP expenses in view of the judgement of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. vs. Commissioner of Income Tax-III 374 ITR 118 that issue already stands remanded to the ITAT by this Court by an order dated 20th May, 2015 in the Assessee s appeal against the same impugned order of the ITAT. 7. This appeal is disposed of by upholding the impugned order of the ITAT on all issues except the issue concerning the transfer pricing adjustment on account of AMP expenses which issue is remanded to the ITAT for a fresh decision in the light of the decision in Sony Ericsson Mobile Communications India Pvt. Ltd. S.MURALIDHAR, J VIBHU BAKHRU, J NOVEMBER 6, 2015 MK ITA 852/2015 Page 3 of 3.

$ * IN HIGH COURT OF DELHI AT NEW DELHI 25. + ITA 852/2015 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr Rohit Madan, Senior Standing Counsel. versus M/S LUXOTTICA INDIA EYEWEAR P. LTD. ..... Respondent Through CORAM: JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU ORDER % 06.11.2015 CM No.26473/2015 1. Allowed, subject to all just exceptions. 2. application stands disposed of. ITA 852/2015 3. This appeal by Revenue is directed against order dated 5th November, 2014 passed by Income Tax Appellate Tribunal ( ITAT ) in ITA No.1115/Del/2014 and 617/Del/2014 for Assessment Year ( AY ) 2009-10. ITA 852/2015 Page 1 of 3 4. Three of questions urged by Revenue in present appeal concern deletion of additions made by Assessing Officer ( AO ) on account of (a) prior period expenses, (b) provisions for warranty expenses and (c) non deduction of TDS under Section 40(a)(ia) of Income Tax Act, 1961 ( Act ). Proceeding entirely on basis of facts, Commissioner of Income Tax (Appeals) decided said three issues in favour of Assessee and that order has been upheld by ITAT by impugned order. 5. As regards above three issues, Court is satisfied that no substantial question of law arises. 5A. other issue is about Assessee having shifted from Transactional Net Margin Method (TNMM) to resale price method (RPM) as most appropriate method (MAM) for purposes of determination of arms length price (ALP). Court sees no reason to interfere since adoption of RPM by Assessee was indeed found to be MAM by Dispute Resolution Panel (DRP) itself. ITA 852/2015 Page 2 of 3 6. As regards issue concerning AMP expenses in view of judgement of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. vs. Commissioner of Income Tax-III (2015) 374 ITR 118 (Del) that issue already stands remanded to ITAT by this Court by order dated 20th May, 2015 in Assessee s appeal (ITA No.336/2015) against same impugned order of ITAT. 7. Consequently, this appeal is disposed of by upholding impugned order of ITAT on all issues except issue concerning transfer pricing adjustment on account of AMP expenses which issue is remanded to ITAT for fresh decision in light of decision in Sony Ericsson Mobile Communications India Pvt. Ltd. (supra). S.MURALIDHAR, J VIBHU BAKHRU, J NOVEMBER 6, 2015 MK ITA 852/2015 Page 3 of 3 COMMISSIONER OF INCOME TAX v. M/S LUXOTTICA INDIA EYEWEAR P. LTD

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