Cost base should exclude pass through cost which are directly related to third parties

ACIT Vs BBC World (India) Pvt. Ltd. (ITAT Delhi) ITAT Delhi held that the pass through cost to the extent which are directly relatable to third parties, namely, advertisement and publicity; business promotion and participation in trade events are to be excluded from the cost base. Facts- The assessee, BBC World (India) Private Limited (BWIPL) formerly known as BBC Worldwide (India) Private Limited. During the year, 75% of the shareholding is with BBC World Limited and 25% with Worldwide Channel Investments Limited. The ultimate holding company is BBC Commercial Holding Company. BBC group is en...