Amount paid as R&D Cess to Government is allowable as deduction irrespective of ALP

McDonald’s India Pvt. Ltd. Vs DCIT (ITAT Delhi) Briefly stated facts of the ground that the assessee paid Rs. 27.27 crore as royalty payment and Rs. 6.83 crore as franchisee fee to McDonald’s Corporation. The assessee also paid Rs. 1.70 crore as R&D Cess on such royalty and franchisee fee. The TPO determined Nil ALP in respect of royalty fee and franchisee fee. The Assessing Officer also disallowed R&D Cess on royalty and franchisee fee amounting to Rs. 1.70 Crore. The DRP deleted the disallowance, against which the Revenue has come up in appeal before the Tribunal. Havi...