INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Regional management fees and GSC management fees paid towards receipt of intra-group services from AE - TPO determine nil ALP applying benefit test

Assessee paid regional management fees and GSC management fees towards intra group services received from AE. TPO applied 'benefit test' and determined ALP of such services at 'Nil'. Held: By applying benefit test, ALP of intra-group services could not be determined at 'Nil', therefore, issue was restored to TPO for fresh determination of ALP of intra-group services by applying most appropriate method specified in section 92C.

Relied:Merck Ltd. v. Dy. CIT (2016) 179 TTJ 121 (Mum-Trib) : 2016 TaxPub(DT) 2303 (Mum-Trib).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 92B(2)

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