Pass- through costs that are incurred for non value- added purposes should not form part of the cost base while determin

The New Delhi bench of the Income Tax Appellate Tribunal (Tribunal) recently pronounced its ruling in the case of Cheil Communications India Private Limited Vs. Dy. Commissioner of Income Tax (New Delhi Bench), ITA No: 712/Del/2010, on transfer pricing issues arising from provision of advertising and other related services rendered by the Taxpayer to its Associated enterprises (AEs). The Tribunal ruled in favour of the Taxpayer stating that the pass through costs which are not in the nature of value added cost for the taxpayer should not be taken into account while computing return/mark-up on ...