Commercial expenditure paid to parent company in terms of agreement is allowable

ACIT Vs Dong Woo Surface Tech India Pvt. Ltd (ITAT Chennai) Facts- The parent company M/s. Dongwoo HST Co. Ltd renders supervisory services to the assessee by dispatching expatriates to India for carrying out work for which the assessee company has agreed to pay supervisory and managerial fees vide agreement dated 25.12.2007. The scope of supervisory services is defined under agreement dated 25.12.2007. The assessee has paid supervisory fees to its parent company in terms of agreement. The Assessing Officer disallowed the supervisory fees on account of lack of genuineness and commercial expedi...