Transaction approved by RBI & Govt not sufficient & assessee has to benchmark royalty payment separately

CA Suraj R. Agrawal Brief of the Case:- The assessee did not benchmark the royalty payment separately. On enquiry by the TPO, it relied on RBI approval given in 1995 and also on the fact that the assessee earned a gross profit of 41.6%. TPO applied Press Note 9 (2000 series) and restricted it to 1% on the plea that the payment was for use of trademark without transfer of technology. Case Summary:- Facts of the case: The assessee-company is engaged in the business of manufacture and sale of shore care, household care and personal care products. Before the TPO, the appellant has taken the rate ...