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2024 (1) TMI 1032 - AT - Income TaxTP adjustment - payment of shared service charges paid by the assessee to the AEs - TPO determine the ALP at Nil and made the TP Adjustment of the entire payment made by the assessee towards availing the said service - HELD THAT:- In the present case, the lower authorities without searching for similar uncontrolled transaction between non associated enterprises just proceeded to treat the value of the international transaction to be at NIL. We notice that in Jabil Circuit India Private Limited [2018 (12) TMI 276 - ITAT MUMBAI] after considering the OECD guidelines upheld the usage of allocation keys for allocation of intra-group services. We are of the view that once availing of various services from the AEs is duly substantiated by the documentary evidence and the cost allocation among the group companies is also on the basis of a well-accepted allocation key method, there is no basis in upholding the transfer pricing adjustment made by the TPO/AO. Accordingly, the AO is directed to delete the transfer pricing adjustment on account of payment of shared service charges paid by the assessee to the AEs. Appeal of the assessee is allowed.
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