The Tax Publishers2020 TaxPub(DT) 3626 (Mum-Trib) : (2020) 206 TTJ 0922

INCOME TAX ACT, 1961

Section 92C

Assessee provided detailed submissions with regard to the nature of services provided by AE and payments made for similar types of services in assessment years 2014-15 and 2015-16 were accepted by TPO without making any adjustments, meaning thereby, TPO accepted the fact that AEs had provided services to assessee. Further TPO, in his remand report, accepted that services were provided during the years under consideration also, therefore, reasoning given by TPO for determining ALP at NIL, presumably by adopting CUP method was rejected and TPO was directed to examine TNMM method adopted by assessee.

Transfer pricing - Determination of ALP - TPO determined nil ALP of support services received from AE by applying benefit test and rejecting MAM applied by assessee -

Assessee claimed to have received support services from its AE abroad and payment made there against to be at arm's length as per TNMM method. TPO applied CUP method and determined ALP of services at NIL on the ground that assessee failed to prove that services were provided and further it was benefitted therefrom. Held: Assessee provided detailed submissions with regard to the nature of services provided by AE and payments made for similar types of services in assessment years 2014-15 and 2015-16 were accepted by TPO without making any adjustments, meaning thereby, TPO accepted the fact that AEs had provided services to assessee. Further TPO, in his remand report, accepted that services were provided during the years under consideration also, therefore, reasoning given by TPO for determining ALP at NIL, presumably by adopting CUP method was rejected and TPO was directed to examine TNMM method adopted by assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2011-12 to 2013-14

INCOME TAX ACT, 1961

Section 92C

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