Royalty paid by a taxpayer computed even on sales made to the Associated Enterprise is at arm’s length

Brief : Royalty paid by a taxpayer computed even on sales made to the Associated Enterprise is at arm’s length. Further, a taxpayer paying royalty to its Associated Enterprise can make additional payments for technical services rendered by personnel deputed by the Associated Enterprise. Citation : ACIT Vs. Sona Okegawa Precision Forging Ltd. [2010-TII-41-ITAT-DEL-TP] Court : Income-tax Appellate Tribunal, Delhi Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of ACIT v. Sona Okegawa Precision Forging Ltd. [2010-TII-41-ITAT-DEL-TP], has upheld that the payment of ro...