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2023 (10) TMI 300 - AT - Income TaxTP Adjustment - Downward adjustment - raw materials and components purchased from the AEs which was not in accordance with the arm’s length principles - HELD THAT:- No material has been placed on record by the Revenue to demonstrate that the decision of Tribunal as discussed above has been set aside / stayed or overruled by the Higher Judicial Authorities. Before us, Revenue has not placed any material on its record pointing out any distinguishing feature in the facts of the case for the year under consideration and that of earlier year nor has placed any contrary binding decision in its support. Thus, we hereby set aside the finding of the DRP and direct the AO/TPO to delete the enhancement of income on account of TP adjustment in the transaction of import of Raw material and components. Hence the ground of appeal of the assessee is hereby allowed. Enhancing the income in relation to receipt of data management and other related service fees paid by the Appellant to its AEs by rejecting the TP documentation maintained by the Appellant and arbitrarily determining arm’s length price as ‘Nil’ by applying Comparable Uncontrolled Price Method(“CUP”) Method - HELD THAT:- Before us, Revenue has not placed any material on its record pointing out any distinguishing feature in the facts of the case for the year under consideration and that of earlier year nor has placed any contrary binding decision in its support. Thus, respectfully following the order of this tribunal in the own case of assessee [2022 (12) TMI 542 - ITAT AHMEDABAD] we hereby set aside the finding of the DRP and direct the AO/TPO to delete the enhancement of income on account TP adjustment in the transaction as discussed above i.e. Data Management Fees. Hence, the ground of appeal of the assessee is hereby allowed. Purchase of fixed assets and payment of Trademark Fee by aggregating the same with the transaction of purchase of Raw Materials and components - Revenue has not placed any material on record to point out any distinguishing feature in the facts of the case for the year under consideration and that of the earlier year nor has placed any contrary binding decision in its support. Thus, respectfully following the order this tribunal in the own case of assessee, we hereby set aside the finding of the learned DRP and direct the AO/TPO to delete the enhancement of income on account TP adjustment in the transaction of import of Raw material and components. Hence the ground of appeal of the assessee is hereby allowed. Enhancing the income pertaining to reimbursement of expenses received from the AEs by recharacterizing “reimbursement of expenses received” as “provision of support services” thereby imputing a markup of 5% on the cost of the reimbursements without providing any detailed/cogent reason for the same - As no material has been placed on record by the learned AR for the assessee that the decision of Tribunal as discussed above has been set aside / stayed or overruled by the Higher Judicial Authorities. Before us, AR has not placed any material on record pointing out any distinguishing feature in the facts of the case for the year under consideration and that of earlier year nor has placed any contrary binding decision in its support. Thus, we confirm the finding of the learned DRP. Hence the ground of appeal of the assessee is hereby dismissed.
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