Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 1077 - ITAT BANGALORETP Adjustment - determination of ALP in respect of international transaction carried out by the assessee with its Associated Enterprise (AE) - HELD THAT:- From the documents given it is difficult to decipher as to what services were rendered by the AE. The document suggests some course of action to be followed in relation to upgradation and migration of ICAP upgrade, IPA upgrade, MMS, COFS, CAS & OTP. As can be from the Chart given in the earlier paragraph, description in Sl.No.B2 to B10, is general in nature. From this one cannot say that the services stated therein were in fact rendered by the AE and other aspects regarding the cost to the AE and the benefit the Assessee received. Similar is the description of services claimed to have been provided by the AE in Sl.No.C 1 to C 8 of the chart given in the earlier paragraph. We have already referred to some E mails which are not contemporary in nature and expressed the view that those E mails do not establish the case of the Assessee. Assessee has to show as to how the services referred to in the chart were in fact rendered by the AE. On the evidence on record, we cannot say that the payment by the Assessee for IGS is at Arm’s Length or to say that it is not at Arm’s Length. The Assessee has to establish and show that it satisfies the parameters as laid down in judicial pronouncements referred in the earlier paragraphs of this order. As already set out the arguments of assessee on the aforesaid services. We find that these documents are general in nature and do not prima facie establish the requirements for testing the payment as at Arm’s Length in the light of the parameters laid down in the decisions referred in the earlier paragraph. All the documents are presentations or other brochures, the significance and utility of which, there appears to be no explanation. In the given facts and circumstances, we deem it fit and proper to remand the issue of determination of ALP to the TPO/AO afresh. We are of the view that the Assessee should be directed to let in cogent evidence and explain the evidence already on record or any other evidence to show the rendering of IGS by the AE and other parameters that need to be satisfied to establish the ALP of the price paid for IGS as laid down in judicial pronouncements referred to in the earlier part of the order. Appeal of the assessee is treated as allowed for statistical purpose.
|