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2022 (12) TMI 422 - ITAT MUMBAITP adjustment on account of reimbursement of seafarer expenses - transaction between the assessee and its A.E - doubt on genuineness of the alleged reimbursement of expenses - HELD THAT:- We find that the DRP also did not correctly appreciate the transaction between the assessee and its A.E. and upheld the adjustment made by the TPO by treating the arm's length price of international transaction to be Nil. From the perusal of the record, it is evident that it is not the case of the Revenue that the mark–up charged by the assessee for the services rendered to the A.E. under the aforesaid agreement is not at arm's length price. Revenue has only doubted the genuineness of the alleged reimbursement of expenses made by the assessee to its A.E. As noted above, the transaction is not reimbursement of expenses by the assessee to its A.E. and rather, is reimbursement of expenses by the A.E. to the assessee. We are of the considered opinion that the impugned adjustment made by the TPO and upheld by the learned DRP in respect of international transactions of reimbursement of the sea farers expenses is based on incorrect appreciation of facts. Therefore, we direct the TPO / A.O. to delete the said adjustment. Assessee appeal allowed.
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