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2022 (8) TMI 858 - AT - Income TaxTransfer pricing adjustment - management services availed by the assessee from its associated enterprise - HELD THAT:- The management fees paid by the assessee forms part of the cost base, while computing the net margin of the assessee, which has already been accepted to be at arm”s length by the TPO. Therefore, once margin of profit in distribution segment has been accepted after consideration of management fees, then there is no question of making any separate adjustment insofar as payment of management fees is concerned. As relying on SONY ERICSSON MOBILE COMMUNICATIONS INDIA PVT. LTD. (NOW KNOWN AS SONY INDIA LIMITED) [2015 (3) TMI 580 - DELHI HIGH COURT] we are of the considered opinion that TPO / Assessing Officer was not justified in making adjustment in respect of international transaction of “Payment of Management Fees” in the present case. Accordingly, grounds raised in assessee's appeal are allowed. Addition u/s 40(a)(i) of the Act for the non-deduction of tax at source on payment made by the assessee to Tekla Corporation for purchase of license, upgrades and maintenance - HELD THAT:- In the present case, though during the course of hearing, learned AR placed reliance upon the aforesaid order passed by the coordinate bench of Tribunal and prayed for similar directions, however, despite adequate opportunity being granted the assessee did not file any additional evidence as were filed in preceding assessment years. Be that as it may, since, as submitted, similar issue is still pending before the Assessing Officer pursuant to aforesaid remand in preceding assessment years, in the larger interest of justice we deem it appropriate to remand this issue, in the present appeal, to the file of Assessing Officer for de novo adjudication with similar directions as were passed by the coordinate bench of Tribunal in aforesaid order. AO further directed to examine the documentary evidence either presented by the assessee or gathered by the Assessing Officer through enquiries which he may deem fit in the facts of the case. Needless to mention that no order shall be passed without affording opportunity of hearing to the assessee. As a result, grounds No. 12 to 15 raised in assessee”s appeal are allowed for statistical purpose.
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