ITA 554/MUM/2022

Parties Involved

Facts Summary

The assessee, SONY PICTURES FILMS INDIA PRIVATE LIMITED, filed an appeal against the assessment order passed by the NFAC, Delhi for the Assessment Year 2017-18. The assessee challenged the total taxable income assessment, the transfer pricing adjustment, and the interest and penalty levied. The assessee argued that the Ld.TPO erred in rejecting the TNMM method and adopting the RSM method for benchmarking the international transaction of payment of license fees for TV syndication. The assessee contended that the TNMM method was appropriate and that the selected software distribution companies were suitable comparables. The Ld.TPO rejected the TNMM method and applied the RSM method, resulting in a transfer pricing adjustment of Rs.8,28,63,654. The assessee also challenged the interest levied under Section 234B and the initiation of penalty proceedings under Section 270A.…

Legal Issues

• 1. Erroneous assessment of total taxable income.
• 2. Erroneous reference to TPO without complying to provisions of Section 92CA.
• 3. Erroneous rejection of TNMM method and adoption of RSM method for benchmarking.
• 4. Erroneous application of RSM method without proper economic basis.
• 5. Erroneous levy of interest under Section 234B.
• 6. Erroneous initiation of penalty proceedings under Section 270A.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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