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The Tax Publishers Rolls Royce India Ltd. v. ADIT [ITA No. 3256 (Del) of 2014, dt. 12-5-2016] : 2016 TaxPub(DT) 2450 (Del-Trib) TP additions and MAP impact Facts: Assessee was a LO reimbursed at cost plus 6%, for its services to Rolls Royce (India) Ltd. and to its neighbouring territories. It is a UK resident 100% owned by Rolls Royce international Ltd. in turn owned by Rolls Royce Plc. The assessing officer made TP additions for the cost plus 6% questioning the 6% mark up. This went up in appeal. Ad interim the assessee had invoked the MAP proceedings under article 27 of Indo-UK DTAA. Since no information came forth coming from the MAP proceedings adjournments were sought which made the Commissioner (Appeals) pass the order against the assessee. On further appeal: Held in favour of the assessee that the case be remanded to the assessing officer for considering the reductions in income based on the MAP order confirmed by both authorities.
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