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2023 (1) TMI 465 - AT - Income TaxTP Adjustment on account of the Management fees and payment of R&D expenses - HELD THAT:- We note that the TPO had accepted that some services forming part of Research & Development Service, and Management Service were rendered to the Assessee. However, since the Assessee had failed to provide the exact cost details and break-up, the ALP of the services as a whole was taken as “Nil". Since during the Assessment Year 2012-13 the TPO had adopted the same approach and determined ALP on ad-hoc basis as “Nil‟, the CIT(A) was justified in deleting the transfer pricing additions by following the judgment of Lever India Exports Ltd [2020 (5) TMI 631 - ITAT MUMBAI] and the decision of the Tribunal in appeals for the preceding assessment years 2007-08/2009-10/2010-11, and 2011-12. We do not find any infirmity in the order passed by the CIT(A). Assessee had furnished relevant documents/details of the actual research & development cost vide letter dated 09.11.2015 and 13.01.2016. As regards, failure of the Assessee to provide service wise break-up of management fee, the Assessee had explained that the Assessee was being charged a lump sum fee for the management services and therefore, was not able to furnish the service-wise break up.TPO failed to take the same into consideration. Ground No. 1 to 5 raised by the Revenue are dismissed.
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