INCOME TAX ACT, 1961

Section 92C

Transfer pricing - Determination of ALP - Payment of management service fee to AE - TPO doubted availment of services-Assessee produced necessary evidences

Assessee claimed deduction of management fee paid to AE abroad.TPO determined ALP thereof at nil on the ground that assessee did not lead any evidence of availing of management services. Held: As per terms of concerned Management services Agreement between AE(the providing party) and assessee (the receiving party), which was applicable to the year under consideration as well, the term `Providing party' has been defined as `all or some of the Sandvik companies which provided management services'. Thus, it was clear that Sandvik AB i.e. provided services to some other group companies also including assessee. . There was a detailed description of services in the categories of Pricing and quotation, Product and proposal, Product related pricing and quotation, Product drawing and pricing, Business promotion and Calculation. Also there were copies of e-mails which demonstrated that personnel of AE rendered services to assesse. Hence, there was not only an Agreement between assessee and its AE for rendering services but assessee actually availed of the same and accordingly, no ALP adjustment was called for.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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