Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 58 - HC - Income TaxTP Adjustment - upward adjustment made by Transfer Pricing Officer on account of Management fees - Upward adjustment on account of Insurance Payment - ITAT deleted the addition - HELD THAT:- We are of the view that the findings of fact recorded by the Tribunal in its impugned order cannot be termed as perverse or contrary to the evidence on record. The very same issue was duly considered by the ITAT for the A.Y. 2008-09. However, according to the learned counsel appearing for the Revenue, having regard to the low tax effect, the order passed by the ITAT for the A.Y. 2008-09 could not be challenged. We are convinced that the decision of the Tribunal is correct and requires no interference. The Tribunal took into consideration the voluminous documentary evidence on record in the form of e-mails correspondence indicating the rendition of services. The Tribunal is right in its view that the assessee would be the right person to know whether the services are required or not. Such issues should be left best to the commercial wisdom of the assessee. What is important is whether the services were rendered or not and whether the cost allocation was on a fair and reasonable basis. In the case on hand, the rendition of services has not been disputed. However, lot of emphasis has been put on the issue of Arm's length price in respect of the management fees. This aspect has also been well discussed by the Tribunal. - Decided against revenue
|