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2022 (11) TMI 1417 - AT - Income TaxTP Adjustment - determination of ALP of Management Fee - TPO made an adhoc unilateral estimation by assuming that around 750 hours would have been spent for providing the aforesaid services for which remuneration of INR 3,000/- per hour was appropriate - HELD THAT:- In the case before us pertaining to Assessment Year 2012-13 [2019 (12) TMI 1238 - ITAT MUMBAI] TPO has determined the ALP of the transaction without following any of the prescribed methods. The transfer pricing adjustment has been made by estimating the man hours (at 750 hours) and the cost of service per hour (at INR 3000/- per hour). Tribunal deleted the addition holding that the TPO had resorted to an adhoc unilateral pricing of the Management Fee without applying any of the prescribed methods and disregarding the facts of the case by placing reliance upon the decision of the co-ordinate Bench of the Tribunal in the case of Kellogg India Pvt. Ltd. [2019 (8) TMI 698 - ITAT MUMBAI] M/s CLSA India Pvt. Ltd. v. DCIT [2019 (1) TMI 1351 - ITAT MUMBAI] Firmenich Aromatics India P. Ltd. v. DCIT [2018 (9) TMI 1007 - ITAT MUMBAI] Identical approach adopted by the TPO stands rejected by the Tribunal in the above said decisions including in the case of the Appellant for the Assessment Year 2012-13. Thus, respectfully following the above decisions of the Tribunal, we delete the transfer pricing addition - Decided in favour of assessee.
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