TII CASES

TP

LANDIS GYR LTD Vs DCIT
In Favour Of : Remanded 
2016-TII-419-ITAT-KOL-TP

Whether when it has been agreed that knowhow is a closely held unpatented inventions, formulae, design, drawings, procedures and methods together with accumulated skills and experience in the hands of a licensor firm's professional personnel, depreciation can be claimed on the same - YES: ITAT Whether when it is not in dispute that the assessee had paid consideration towards acquisition of Goodwill, can the assessee still be denied depreciation on the same - NO: ITAT Whether if under the domestic manufacturing segment, an assessee is engaged in importing raw materials and components or semi finished goods from its AEs, finding of close comparable companies engaged in import of such products becomes difficult, in that case it would be ideal to benchmark the transaction of overseas entities for determination of ALP - YES: ITAT Whether if the margin earned from the entire segment cannot be considered as a representation of meager international transaction encompassed therein, the selection of a comparable as a tested party would result in an abnormal outcome in the TP adjustments - YES: ITAT Whether if adoption of TNMM by the TPO for purchase of raw materials & components under manufacturing domestic segment, had resulted in an abnormal outcome in TP adjustment which is even more than the value of international transactions, it is just and fair to ignore the same - YES: ITAT Disallowance of Depreciation on Intellectual Property Rights and Goodwill Kolkata ITAT