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2018 (3) TMI 302 - AT - Income TaxAddition to the total income towards reimbursement of salary cost - ALP determination - Imparting business support services to its AE and project management services - Held that:- The Assessee Company had earned income on the sale of the project and also project management income in the subsequent years. Assessee Company was under contractual obligation to provide project management services and business consultancy services to TBSL post-sale, and also the income earned from such services has been offered for tax. In fact, the TPO has allowed the Indian component of salary paid to such employees, however, denied the deduction of foreign component by determining the ALP of such cost as ‘Nil’. TPO has accepted the business support income and project management income earned by the Assessee through employment of such expats. This action of the TPO is not just and proper when it is accepting the salary paid to such employees in India should not deny the deduction on foreign component of the same. The same set of expats were also engaged in providing business support services and the income from such services has been offered for tax and accepted by the TPO. Also, post-sale of the project, the Assessee Company has charged to TBSL towards provision of project management services which has also been offered for tax and accepted by the Department. Since the income earned through these expats has been accepted by the TPO and the local expenditure also against the said income has been allowed, only the foreign component which was disbursed in Australia for convenience of such expats cannot be disallowed. These factual aspects where never rebutted by the TPO/AO. The CIT(A) has taken cognizance of all these factors and given a detailed findings in respect thereof. There is no need to interfere with the finding of the CIT(A). All the three appeals filed by the Revenue are identical. Therefore, all the appeals are dismissed.
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