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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.

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.