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2023 (1) TMI 561 - AT - Income TaxTP Adjustment - Adjustment to procurement cost of the appellant (Mirror Transaction Approach) - determination of Arm’s Length Price (ALP) of the transactions between the PE with TICB and EDTICB which come within the ambit of International transaction as defined u/s 92B - HELD THAT:- Payments made by the assessee PE to its AE’s i.e. assessee with TICB and EDTICB were held to be at Arm’s Length by this Tribunal [2013 (12) TMI 126 - ITAT MUMBAI]; and since the same international transaction of the instant assessee’s procurement cost (being sub-contracting income for the AE’s i.e. of assessee viz TICB and EDTICB) has been accepted as Arm’s Length for the AE’s and the same being mirror transaction cannot be considered excessive in the hands of the assessee/appellant. Therefore, on the same reasoning/ratio of the decision of the Tribunal (Banglore) in UE Development India Pvt. Ltd. [2017 (6) TMI 1381 - ITAT BANGALORE] which has been upheld by Hon’ble High Court [2018 (8) TMI 2104 - KARNATAKA HIGH COURT] we hold that where the Tribunal has accepted the international transaction to be at Arm’s Length Price in the hands of AE, then the international transaction that the assessee had with the AE’s to be also at Arm’s Length Price and therefore no adjustment was warranted in the facts and circumstances of the case. So we allow the ground of the assessee’s appeal and direct deletion of Arm’s Length Price made as per the impugned order.
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