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2020 (12) TMI 551 - AT - Income TaxTP Adjustment - ALP determination - ALP agreed to between the Government and the assessee - case of the appellant is that, it had signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) for five years i.e. F.Y. 01.04.2015 to 31.03.2020 - As per the APA, for management fees for IGS is the amount of management charges paid in the manufacturing segment does not exceed 2.95% of operating revenue of the manufacturing segment of the previous year - whether, when the factual matrix including the functional and risk profile of the assessee with respect to these three years under appeal is similar, to the factual matrix and functional profile of the assessee considered by the CBDT while determining the ALP in the APA, for the five Financial years 2015-16 to 2019-20 and for the rollback period i.e. FY 2012-13 to 2014-15? HELD THAT:- In our view the ALP determined and agreed to in the APA should necessarily be applied as the ALP, on the international transaction of IGS and R & D services for the assessment year in appeal. While holding so, we have considered the various judgments one of which is of passed by the Hon'ble Delhi High Court in the case of Ameriprise India Pvt. Ltd.[2016 (3) TMI 1272 - DELHI HIGH COURT]. We direct the Assessing Officer to adopt the ALP determined in the APA as the ALP of the international transaction of MSSF for IGS and R & D services for all the impugned assessment years.
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