Assessee claimed deduction of management fee paid to its AE abroad. TPO determined ALP thereof at nil alleging that the assessee failed benefit test.Held: Voluminous documentary evidences were filed before TPO such as not competent to apply the benefit test to determine value of transaction entered into with AE. To demonstrate that assessee, indeed, received management services. TPO ignored the evidences filed by assessee by merely stating that the assessee failed benefit test though TPO was not competent to apply the benefit test to determine value of transaction entered into with AE. Therefore, adjustment made by TPO by determining ALP of the management services fee at nil, was not sustainable.
IN THE ITAT, DELHI BENCH T, NEW DELHI
G.S. PANNU, PRESIDENT & SAKTIJIT DEY, J.M.
CEVA Logistics India (P) Ltd. v DCIT
ITA No.8124/DEL/2018
A.Y. 2014-15
19 January 2023
Appellant by: Salil Kapoor, Advocate Lalchandani, Advocate Ananya Kapoor, Advocate
Respondent by: Mahesh Shah CIT, DR
Saktijit Dey, J.M.
The present appeal has been filed by the assessee challenging the final assessment order dated 30-10-2018 passed under section 143 (3) read with section 144 C of the Income Tax Act, 1961 (for short the Act) pertaining to assessment year 2014-15, in pursuance to directions of learned Dispute Resolution Panel (DRP).
2. In ground No. l, the assessee has challenged the validity of the assessment order being passed in the name of a nonexistent entity. However, at the time of hearing, on instructions, learned Counsel did not press the ground and submitted for arguing the issue on merits.
3. Keeping in view of the aforementioned submission of learned Counsel, we dismiss ground No. 1 as not pressed.
4. In ground No.2 to 4, the assessee has challenged the decision of the departmental authorities in determining the value of the international transaction relating to management services availed from the associated enterprises at Nil.