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2019 (1) TMI 591 - AT - Income TaxLevy of interest under sections 234B/C/D - admissibility of GBU service charges in all these three years - Held that:- Faced with the above situation, and keeping in view the application filed for adducing additional evidence in other two years, we deem it appropriate to set aside orders of the CIT(A) in all these three years and remit this issue to the file of the AO for adjudication afresh. AO is required to examine organizational structure of the holding company vis-à-vis the assessee-company. The assessee has to demonstrate a nexus between consultancy and any other nature of services provided by the holding company at the global head with some demonstrative evidence. It is to be demonstrated that certain services have been provided by the HO to the subsidiary for which expenditure have been worked at global HO level. If it is established that nexus is available, showing services rendered by the HO to the assessee-company, then ld.AO would look into ALP of the value of such services vis-à-vis the expenditure claimed by the assessee. The assessee will be at liberty to submit necessary details in order to establish its case. Observation made by us will not impair or injure the case of the AO nor any prejudice will cause be to defence/explanation of the assessee. AO shall decide this issue afresh in accordance with law. With the above observation, we allow all these appeals for statistical purpose.
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