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2017 (3) TMI 1806 - AT - Income TaxTP Adjustment - downward adjustment made by the Ld. TPO in respect of the international transactions - assessee to justify its claim for having received services from Associated Enterprises, whereas it was observed that many of the services were duplicative in nature as the assessee failed to explain how payments were made to its employees as well as its Associated Enterprises - DRP emphasized that the assessee company has failed to produce any documents to substantiate the claims and the Ld. TPO has consider the information and observed that the assessee has not cooperated in submitting the correct data - HELD THAT:- We are in consonance with the facts that the Associated Enterprises rendered services and the payments have been made by the assessee company though assessee could not substantiate it due to various reasons on the claim, we find strength in the arguments of the Ld. AR, that these expenditure being genuine and incurred wholly and exclusively for the purpose of business and we are of the opinion that if the assessee produced the details of expenditure for availing the services from the Associated Enterprises and prove the genuineness of transaction. We having considered the factual aspects, judicial decisions and also the facts of claim of expenditure by the assessee and cannot be overlooked and an opportunity may be provided to substantiate the claim supporting the details of expenditure in the nature of management fees paid to the Associated Enterprises. In the interest of justice, we provide an opportunity to the assessee and remit the disputed issue to the file of the DRP which has considered these facts in its order and further direct the assessee to produce the claim of expenditure with supporting evidence and accordingly the assessee appeal is allowed for statistical purposes.
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