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2017 (1) TMI 1724 - AT - Income TaxTransfer Pricing adjustment u/s 92CA - management fee paid to the AE - HELD THAT:- When the assessee claims that the assessee has paid the management fee to the AE, no doubt the burden is on the assessee to prove that it has received services from its AE. But when the assessee has produced such material before any of the authorities below it is also the duty of the authorities to consider the same before coming to any conclusion on merits. Same, without verification of proper evidence, it not justified to come to the conclusion that payment of management fee of ₹ 1.55 crore is unwarranted. We set aside the order of the AO on this issue and remit the issue to the file of the AO/TPO for re-adjudication of the issue and re-determination of the arm’s length price in accordance with law. The assessee shall also be given an opportunity to produce all the relevant materials before the AO and the assessee shall co-operate with the AO for early determination of the arm’s length price by the AO/TPO. Deduction u/s. 10A - HELD THAT:- Judgment of jurisdictional High Court in the case of CIT v Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it was held that the expenses reduced from the export turnover should also be reduced from the total turnover. Since the issue is covered by the judgment of jurisdictional High Court in the aforesaid case, we set aside the assessment order and direct the AO to recompute the deduction u/s. 10A in the light of judgment of jurisdictional High Court in the case of Tata Elxsi Ltd. Appeal of the assessee stands allowed for statistical purposes.
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