Transfer pricing case: ITAT rules in favour of BBC World (India)

Income Tax authorities had sought to categorise advertisement and other expenses borne by BBC World (India) Pvt Ltd as cost base for charging a mark-up. The cost-based method for charging a mark-up increases the income of the assessee, resulting in a higher tax payable amount. ITAT considered the advertisement expenses a pass-through cost as it was not associated with the main business activity of BBC World (India).