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2023 (6) TMI 350 - ITAT DELHITP adjustment - international transaction of receipt of intragroup services with its AEs alleging that it does not satisfy the arm's length principle envisaged under the Act and thereby making an adjustment - HELD HAT:- The taxpayer in its TP analysis characterized itself as a routine manufacturer assuming normal risks associated with such operation. We note that the assessee has furnished enormous evidences which point out that intra group services have in fact been received by the assessee. Moreover, the agreement is a composite one and authorities below have allowed part of the same and treated part of the same not allowable. On similar facts, ITAT has deleted the adjustment for several years and the Revenue’s appeal against them has been dismissed by Hon’ble High Court. As decided in AY 2009-10 [2021 (10) TMI 909 - ITAT DELHI] agreement is an intrinsic one and that it is wrong to split the same and hold that some services are at arm's length and some services are not.When there is an agreement for services and certain services out of a bundle of services are undisputedly rendered, the entire agreement has to be viewed as a whole. Whether the services have actually resulted in a benefit to the assessee or not is not material. The conclusion of the Ld. TPO that the services have not resulted in any benefit and no independent entity would have made such a payment is in the realm of surmised and conjunctures and not backed by any material. Thus, the ALP determined by the assessee company is accepted and the TPO adjustment is deleted. Also in the Assessee’s case for AY 2008-09 [2016 (1) TMI 933 - ITAT DELHI] held that OECD guidelines end an aggregated benchmarking approach in a situation, where the underline transactions are closely linked to the core business operations We find that the above order applies on all fours to the present appeals. Here also from the composite agreement, some have been accepted at arm’s length price and some have been treated as not acceptable at arm’s length price. Huge details of intra-group services have been furnished by the assessee. Respectfully following the precedent from the ITAT and Hon’ble High Court [2016 (9) TMI 244 - DELHI HIGH COURT] we uphold the contention of the assessee and delete the TP adjustment. Decided in favour of assessee.
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