Toshiba Transmission & Distribution Systems (India) Private Ltd. vs. ACIT, Circle-8(1)

Parties Involved

Facts Summary

The assessee, Toshiba Transmission & Distribution Systems (India) Private Ltd., filed its return of income for the Assessment Year 2015-16, declaring a current year loss. The case was selected for complete scrutiny, and statutory notices were issued. The Assessing Officer observed international and domestic transactions with associate enterprises and referred the matter to the Transfer Pricing Officer. The TPO proposed an adjustment of Rs.98,99,600/- on the international transactions. The assessee filed objections before the Dispute Resolution Panel, which were dismissed. The assessee then filed an appeal, raising twelve grounds, of which only six were argued. The primary contentions were regarding the nature of payments made to secondment employees and the disallowance of technology licensing fees.…

Legal Issues

• 1. Whether the payments made to secondment employees were in the nature of Fee for Technical Services (FTS) or salaries.
• 2. Whether the technology licensing fees paid to the parent company were allowable.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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