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| The Tax Publishers2020 TaxPub(DT) 0104 (Pune-Trib) : (2020) 205 TTJ 0736 INCOME TAX ACT, 1961
Section 92C
Question of aggregation or segregation of transactions could arise only when it was proved that assessee actually availed of services for which it made the payment. Admittedly, assessee could not adduce any evidence either for cost sharing arrangement without any mark up or actual receipt of services, therefore, TPO was justified in making disallowance.
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Transfer pricing - Determination of ALP - Assessee having failed to prove receipt of services seeking aggregation of concerned transaction with other reported transactions under TNMM -
Assessee claimed deduction of payment ande to AE on account of allocation of shared service charges. TPO determined ALP thereof at nil on account of assessee's failure to substantiate receipt of services. Assessee pleaded for aggregation of transaction of allocation of shared service charges with other reported transaction under TNMM. Held: Question of aggregation or segregation of transactions could arise only when it was proved that assessee actually availed of services for which it made the payment. Admittedly, assessee could not adduce any evidence either for cost sharing arrangement without any mark up or actual receipt of services, therefore, TPO was justified in making disallowance.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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