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| The Tax Publishers2020 TaxPub(DT) 1208 (Pune-Trib) : (2020) 203 TTJ 0623 INCOME TAX ACT, 1961
Section 92C
Where assessee claimed deduction of professional fee paid to AE abroad and TPO himself admitted the factum of email exchanges between assessee/its customers and AE, it was amply established that services were rendered by AE to assessee and TPO was, therefore, not justified in determining nil ALP when effect of such services also percolated to assessee company.
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Transfer pricing - Determination of ALP - Payment of professional fee to AE - TPO doubted rendition of services
Assessee claimed deduction of professional fee paid to AE abroad. TPO doubted rendition of services by AE and accordingly determined NIL ALP. Held: TPO admitted the factum of email exchanges between assessee/its customers and AE. TPO held that such e-mails were in the nature of shareholders activity, which position was not correct on noticing that effect of such services also percolated to assessee company, thereby excluding them from the ambit of shareholders activity. Thus, it was amply established that services were rendered by AE to assessee. Benchmarking would be done by taking assessee itself as a tested party and Indian comparables and then applying a correct method.
REFERRED :
FAVOUR : in assesse's favour (by way of remand)
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 92C
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