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2018 (8) TMI 1258 - AT - Income TaxTransfer pricing adjustment - Receipt of business support services - The assessee applied Transactional Net Margin Method (TNMM) for demonstrating that this international transaction was at ALP. In order to benchmark this transaction, the assessee selected its foreign AE as tested party and chose foreign comparables. The assessee segregated services availed under twelve heads, which have been set out on pages 5 and 6 of the TPO’s order. - TPO rejected the claim of assessee. Held that:- the assessee furnished some evidence in support of some of the services, though such evidence was not complete as has been recorded by the TPO in respect of other services, such as, Controllers, Corporate Law, Procurement, Treasury and Business Advisory. Thus, the international transaction of receipt of services entered into by the assessee with its AEs prima facie does not appear to be bogus, at least to some extent for which evidence was furnished. It is found that the TPO rejected the TNMM as applied by the assessee and stated to have applied the CUP method for determining the ALP of the international transaction of receipt of intra-group services. While applying the CUP method, it was obligatory upon him to bring on record some comparable uncontrolled instances availing similar services as per the mandate of rule 10B(1)(a)(i). Not even a single comparable case has been brought on record to facilitate a comparison between the price for the services availed by the assessee vis-à-vis that paid by other comparables in similar circumstances. The matter is remitted to the file of AO/TPO for determining the ALP of the international transaction of ‘Receipt of business support services’ de novo as per law after allowing a reasonable opportunity of hearing to the assessee.
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