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2022 (9) TMI 287 - AT - Income TaxALP determination - tested party for the purpose of determining the ALP - whether the AEs can be considered as a tested party as per Indian Transfer Pricing Regulation? - HELD THAT:- As respectfully following the ratio laid down by the Hon’ble Court [2022 (2) TMI 1063 - CALCUTTA HIGH COURT] hold that AEs can be selected as tested party and, thus, reverse the finding of the ld. CIT(A) and allow the common ground raised by the assessee for AY 2014-15 & 2015-16. International Transaction of purchase of finished goods from AEs and receipt of commission from the AEs - HELD THAT:- As in assessee's own case HC [2022 (2) TMI 1063 - CALCUTTA HIGH COURT] as held DRP, on noting that such issue was raised by the assessee before it for the first time, forwarded the contention to the TPO for his consideration and submit a remand report. The TPO in his remand report held that the segmentation of profitability provided by the assessee has no basis and is far fetched and not audited. Upon consideration of the remand report submitted by the TPO, the DRP accepted the same and denied relief to the assessee for the assessment year 2012-13. However, for the assessment year 2013-14 and the subsequent assessment year 2014-15 the DRP has accepted the stand of the assessee with regard to the segmentation of the profitability. These factors were taken into consideration by the Tribunal and on facts it was noted that the adjustment can be made only on the basis of the transaction and not on aggregation and, accordingly, accepted the segmentation analysis of the assessee.- Decided in favour of assessee. Disallowance of administrative support services and IT support services which were held to be in the nature of stewardship services and other expenditure claimed - HELD THAT:- As administrative support services and IT support services being not in the nature of stewardship services and ld. D/R having failed to controvert this fact. We, therefore, respectfully following the ratio laid down by the Hon’ble Court [2022 (2) TMI 1063 - CALCUTTA HIGH COURT] and observing that there is no change of facts in the instant case, reverse the finding of the ld. CIT(A) and allow the above stated ground raised by the assessee for AY 2015-16.
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