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2016 (12) TMI 43 - ITAT DELHITransfer pricing adjustment - payment on account of royalty by aggregating transaction along with all other international transactions based on CUP - Held that:- Keeping in view the law laid down in CIT vs. EKL Appliances [2012 (4) TMI 346 - DELHI HIGH COURT] and the fact that the contention of the assessee company that the payment on account of royalty by aggregating transaction along with all other international transactions based on CUP has been accepted by the revenue in assessee’s own case qua AY 2010-11 and 2012-13 (TPO vide order qua AY 2010-11 held that on the basis of functional and economic analysis of assessee company and that of comparables, no adverse inference is drawn in respect of the international transaction undertaken by the assessee during FY 2009-10), we are of the considered view that the matter is required to be remanded to the TPO to decide afresh on furnishing the facts by the assessee after providing an opportunity of being heard to the assessee. Adjustment in respect of intercorporate services - non furnishing of details of expenses in the shape of service charges and corporate services received from its AEs - Held that:- As relied upon CIT vs. EKL Appliances (supra) and further contended that during the AY 2010-11 and AY 2012-13 in assessee’s own case, the revenue has accepted the contention of the assessee that intra-group services have actually been received by the assessee from its AEs. Even otherwise, there is a mistake apparent on record that the TPO/DRP have treated ₹ 3,14,87,895/- as adjustment u/s 92A on account of intra-group services when the assessee has actually charged to profit & loss account of ₹ 2,57,91,160/- for intra-group services received and claimed in returned income for the year under assessment after offering ₹ 48,20,700/- as prior period charges. So, the TPO required to verify all these facts and to decide the issue afresh after providing an opportunity of being heard to the assessee. So, this issue is also restored to the TPO.
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