Shanti Prime Publication Pvt. Ltd.
Section 92, 92B, 92CA, 199, 234B of Income Tax Act, 1961—Transfer Pricing— The assessee challenged the order of Tribunal’s dated 13.04.2018 before Hon’ble Bombay Hon’ble High Court in Writ Petition before the; vide W.P. No. 3508/2018. The Hon’ble High Court vide order dated 03.01.2019 set- aside the order of Tribunal dated 28.07.2017 and restored the matter back to the Tribunal for fresh adjudication. The Hon’ble High Court also directed to decide the characterization of distribution fee i.e. Royalty or not. Tribunal held that distribution fee cannot be termed as ‘Royalty’ thus; discussion on the royalty agreement selected for comparability has become academic. Next ground relates to short deduction of TDS, MAT credit and interest u/s 234B. Although, no specific submission was made by ld. representative of the parties. However, keeping in view the principle of natural justice, the AO was directed to verify the TDS details and grant appropriate relief to the assessee as per law. Similarly on MAT Credit, the AO was directed to verify the fact and grant relief to the assessee in accordance with law. So far as levy of interest u/s 234B was concerned, this interest is consequential, thus, the AO is directed to work out the interest as per law. And one other ground relates to initiation of penalty u/s 271(1)(c),that ground of appeal was premature and needs no specific direction. Therefore, the appeal of the assessee was partly allowed. --- SONY PICTURES NETWORKS INDIA PVT. LTD. vs. Deputy CIT.  23 ITCD Online 39 (MUM)