Refund of royalty as per Advance Pricing Agreement could not be treated as income in assessee’s hands

Gemological Institute of America Inc. Vs Add. CIT (ITAT Mumbai) Conclusion: In terms of the provisions of section 92CE, refund of taxes could be claimed or allowed on account of secondary adjustments- even if, such secondary adjustments end up reducing the income of the foreign AE assesses as a result of partial repatriation of income.  Whether the refund was voluntary or under a legal obligation, it did not really make any difference as long as the refund was bonafide and particularly when its commercial expediency was not, and rightly so, even called into question. It was deemed fit and pro...