Payment for breach of contractual obligation pursuant to arbitration award allowable

DCIT Vs Nipro Medical India Private Limited (ITAT Hyderabad) Nipro Corporation (Japan) was selling bulk needles, pack needles etc. in India through a third party distributors by name M/s Atlantic Pharmaceuticals till 2005-06. In the financial year 2006-07, they formed the assessee for the purpose of marketing and supply of Nipro products in India. In the financial year 2010-11 M/s Nipro India Corporation Pvt. Ltd. was formed for the purpose of manufacturing activity. It was, however, thought by the Nipro Corporation (Japan) that till the manufacturing activity takes place in India, the Nipro I...