observed:
“44. It appears that before approaching RBI, these
foreign law firms had approached the Foreign
Investment Promotion Board (FIPB for short) a High
Powered ... foreign
law firms. Thereafter, these law firms sought
approval from RBI and RBI granted the approval in
spite of the rejection of FIPB. Though specific
agreement' entered with JM UK was duly approved by RBI and Foreign
Investment Promotion Board (FIPB) and as per the terms of the
agreement ... years from the date of grant of approval from the RBI.
Accordingly, the royalty was payable for the period between financial
year
that payment of royalty was
approved by RBI and Department of Industrial Policy and Promotion, Ministry of
Commerce and Industry, Govt. of India and hence
India [RBI] as compounding fees under the
provisions of Foreign Exchange Management Act, 1999 [FEMA]. The
assessee obtained approval from Foreign Investment Promotion Board
[FIPB ... granted,
inter-alia, subject to compounding by RBI. Accordingly, the assessee
filed an application to RBI for compounding of contravention under
FEMA 1999 vide application
proportion in which it incurs expenditure on R&D and Brand promotion.
16.10. Without prejudice, the assessing officer erred in considering the
consolidated financials ... assessing officer erred in failing to appreciate the
permissible limits of RBI for the payment of the brand royalty i.e. 5% on domestic
sales
brand usage royalty without appreciating the fact that approval taken from RBI
cannot be taken to be augmenting the terms of agreement with the principal ... know-how royalty without appreciating the fact that approval taken from RBI
cannot be taken to be augmenting the terms of agreement the principal
export
sales is within the limits prescribed by the RBI in the earlier year
and was a bonafide transaction.
3.4 That the assessing officer ... relation to the advertisement, marketing and
sales promotion expenses (hereinafter referred to as 'the AMP
expenses') incurred by the appellant.
4.1 That
premises for starting the branch is an
activity incidental or conducive to promotion or
::: Uploaded on - 22/10/2018 ::: Downloaded on - 25/10/2018 ... such businesses
being subject to the control of the
Regulator, viz. RBI. In other words, the
1949 Act allows banking companies to
undertake activities
Labs India Private Limited
having its registered
Office at No.138,
Export Promotion Industrial Park,
Whitefield road, Whitefield,
Bangalore - 560 006.
...Appellant ... Officer - Ward - 12(2),
14/3, 4th floor,
Rashtothana Bhavan (Opp. RBI)
Nrupathunga Road,
Bangalore - 560 001.
...Respondent
(By Mr. E.I.Sanmathi, Advocate)
This
appreciate that the enhancement of royalty payment
was made only after the RBI permitted enhancement in the rate
of royalty payments, as no specific additional ... only acquired
exclusive license to use trade' mark for promotion, distribution
and sale or products manufactured by the assessee, whereas no
additional benefit
