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2024 (1) TMI 794 - ITAT AHMEDABADTP Adjustment - Upward adjustment of Arm’s Length Price in respect of Management Services - AO observed that the assessee had entered into international transactions and had paid fees for availing management services from it’s Associated Enterprise in China - CIT(A) decided the issue in favour of the assessee on the ground that the ITAT Pune in assessee’s own case for A.Y. 2009-10 [2019 (6) TMI 1716 - ITAT PUNE] has decided this issue in favour of the assessee - HELD THAT:- In view of the arguments put before us, it would be useful to reproduce the relevant extracts of the ITAT ruling rendered in assessee’s own case for A.Y. 2009-10 as held that the assessee entered into an agreement with Schaeffler Holding (China) Co., Ltd for receipt of "Management support. Services", for which separate benchmarking was required to be done. Such services were actually rendered. These services are not in the nature of stewardship or shareholder activity. The payment to Schaeffler Holding (China) Co. Ltd. at the actual costs incurred in providing such services plus 5% mark-up is at ALP, which does not require any transfer pricing addition. We, therefore, set aside the impugned order by holding that the international transaction of payment of Fees for Management, services is at ALP, which does not require any transfer pricing addition. Upward adjustment of ALP made by the TPO in respect of benchmarking of manufacturing segments - As decided in own case or A.Y. 2009-10 in the interest of justice, the TPO is directed to re-compute the adjustment.
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