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| The Tax Publishers2021 TaxPub(DT) 0343 (Bang-Trib) INCOME TAX ACT, 1961
Section 92C
For the concerned services, i.e. intra-group services received from AE, assessee was to demonstrate and satisfy Evidence Test or rendition test and benefit test, as envisaged under section 92(2), and that, services provided by AE were neither duplicative nor shareholder's activity. TPO was thus directed to determine ALP of these services based on documents submitted by assessee by determining 'most appropriate method' and comparability analysis.
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Transfer pricing - Determination of ALP - Payment towards intra-group services to AE - TPO determined nil ALP for want of evidences alleging no benefit derived by assessee
Assessee claimed deduction of payment made to its AE abroad towards intra-group services. TPO determined ALP thereof at nil on the ground that assessee failed to provide evidence regarding receipt of services, alleged to be rendered by AE, necessitating any payment and assessee did not obtain any benefit out of such services and such services provided by AE were not required. Held: For the concerned services, assessee was to demonstrate and satisfy Evidence Test or rendition test and benefit test, as envisaged under section 92(2), and that, services provided by AE were neither duplicative nor shareholder's activity. TPO was thus directed to determine ALP of these services based on documents submitted by assessee by determining 'most appropriate method' and comparability analysis.
Relied:Delloite Consulting India (P.) Ltd. v. Dy. CIT/ITO (2012) 137 ITD 21 (Mum-Trib) : (2012) 22 taxmann.com 107 (Mum) : 2012 TaxPub(DT) 2512 (Mum-Trib)
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
IN THE ITAT, BANGALORE BENCH
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