The Tax Publishers2020 TaxPub(DT) 1368 (Mum-Trib) : (2020) 204 TTJ 0402

INCOME TAX ACT, 1961

Section 92C

Assessee having furnished voluminous documents in the form of correspondence, notes, e-mails, invoice raised, etc., proved not only actual rendition of service, but also the benefit derived. Also, assessee, had received certain specified services from AE and payments had been made in consideration of such services. Therefore, services rendered by AE to assessee certainly had some value attached to it and thus determination of ALP at nil was without any legal sanctity.

Transfer pricing - Determination of ALP - Payment towards intra group services to AE - Benefit test--Assessee furnished voluminous evidences

Assessee made payment towards intra group services to AE abroad. TPO applied benefit test and determined ALP thereof at nil.Held: Assessee having furnished voluminous documents in the form of correspondence, notes, e-mails, invoice raised, etc., proved not only actual rendition of service, but also the benefit derived. Also, assessee, had received certain specified services from AE and payments had been made in consideration of such services. Therefore, services rendered by AE to assessee certainly had some value attached to it and thus determination of ALP at nil was without any legal sanctity.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 37(1)

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