Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1709 - ITAT PUNETP Adjustment - MAM selection in determining ALP of international transactions - payments made to AE's for providing Intra group services i.e. Marketing & Administrative Services at nil and thereby making an upward adjustment - assessee had applied TNMM method and had aggregated all the transactions including transaction of purchase of raw material along with payment for Intra group services and had held that the arm's length price of international transactions were at nil. HELD THAT:- We find that similar issue of determination of arm's length price of cost of Intra group services arose before the Tribunal in assessee’s own case in assessment year 2009-10 [2018 (3) TMI 2014 - ITAT PUNE] held that where the authorities below had not raised any doubt over the genuineness of payments made by assessee to its parent company, then no adjustment could be made by applying the benefit test. Where the assessee had made payments to AE's for Intra group services at cost, then the authorities below had erred in determining the cost of Intra group services at nil and make the aforesaid adjustment. Thus applying the same parity of reasoning above, we reverse the orders of authorities below in applying CUP method to arrive at the arm's length price of transactions of Intra group services at nil. There is no merit in the upward adjustment made in the hands of assessee on account of two segments i.e. Marketing Services and Administrative Services. Reversing the same, we direct the AO/TPO to apply TNMM method to determine and benchmark the transactions on aggregate basis along with other transactions. Appeal of assessee is allowed.
|