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2020 (9) TMI 1176 - ITAT DELHITP Adjustment - upward adjustment on account of payment for support services - quarrel relates to the receipt of support services for which the appellant has taken TNM Method as the Most Appropriate Method - HELD THAT:- A perusal of the profit and loss account of the appellant company shows that the assessee has not incurred a single rupee on employee cost. Even in the notes of accounts it is mentioned that no provision for retirement benefits has been made in these financial statements as there were no employees on the payroll of the company during the year. These facts clearly show that the assessee was totally dependent on the AE for running its business. But for the support and services provided by the AE, the assessee could not have booked turnover of ₹ 917 crores. On the basis of these time sheets of the employees of BGEPIL, it raised debit notes on the assessee. This further supports the fact that the appellant was fully dependent on the employees of BGEPIL for support services including assistance in procuring and selling LNG, obtaining information concerning industrial and commercial matters, etc. The receipt of services further find support from the evidences in the form of documents showing compliance to various acts like filing of Income tax return, VAT return, preparation of financial statements, tax audit report, time sheets filled in by BGEPIL employees, TPO has grossly erred in appreciating the facts in true perspective when he held that the employees of BGEIPL sitting in UK cannot comply with tax provisions in India. The fact of the matter is that BGEPIL was rendering these services from its office situated in India and the employees were very much based in India. The Tribunal in assessee's own case for A.Y. 2010-11 [2019 (1) TMI 107 - ITAT DELHI] on identical set of facts has deleted the adjustment made on account of disallowance of payment of management services and unit charges by the assessee to its AE - Thus no merit in the upward adjustment and the same is directed to be deleted. - Decided in favour of assessee.
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