TMI Blog2014 (4) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... as held to be unsustainable by the Tribunal. Keeping in view these decisions of co-ordinate Bench of this Tribunal and having regard to all the relevant facts of the case as summarized by the ld. CIT(A) in his impugned order, we hold that the addition made by the A.O./TPO on account of TP adjustments in respect of the international transactions of the assessee company with its AE involving availing of IT support services was not sustainable either in law or on the facts of the case and the ld. CIT(A) was fully justified in deleting the same. We, therefore, uphold the impugned order of the ld. CIT(A) giving relief to the assessee and dismiss this appeal filed by the Revenue. - Decided in favour of assessee. - I.T.A. No.4347/Mum/2012 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply with these requirements and the ALP of the relevant transactions therefore was determined by the TPO at nil thereby making TP adjustment of ₹ 15,73,624/-. 3. When the addition on account of TP adjustment was made by the A.O. vide assessment order dated 19-1-2011 passed u/s 143(3) of the Act, an appeal was preferred by the assessee before the ld. CIT(A) disputing the said addition. During the course of appellate proceedings before the ld. CIT(A), elaborate submissions were made on behalf of the assessee in support of its case that the addition made on account of TP adjustment was not justified. After discussing the submissions made on behalf of the assessee, the ld. CIT(A) recorded his findings/observations on the issue of TP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication software / system software, Microsoft window, Computer Aided Design Software, Mcafee Anti Virus, Safeboot, Psynch, Service Manager 7 etc. through the intranet it has got services relating to defining group policies, access to literature, technical notes, sharing of experience, knowledge within the group and the emergency management services. v. For all these services received by the appellant, it has paid a sum of USD 2900 p.m. as IT support services to the AB, which as per the submission of the appellant is only required to recover the costs from the group enterprise of the appellant. As such through its activities, the AE which is the group holding company has not earned any margin. vi. It has been further stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction in the open market. Further the TPO has not arrived as to how and why the bench marking conducted by the appellant is not acceptable. Without rejecting the bench marking of the appellant, the TPO is not within his jurisdiction to redetermine the ALP of the international transaction. Further it cannot be fact of the case that when the services has been received which are of the nature of use of intranet services together with group support services and using right of system and software, clearly the cost of such benefit received cannot be Nil. x. It has been mentioned by the appellant that during the year it has used almost 170 computers and equal number of users and the management of the appellant company agreed to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gth had not been disputed by the TPO and this position clearly evident from the order of the TPO has not been disputed even by the ld. D.R. at the time of hearing before us. It is also observed that the ALP of the said transactions was determined by the TPO at nil without applying any of the prescribed methods and the entire payment made by the assessee for availing the IT support services from its AE was added as TP adjustment. In the case of Merch Ltd. DCIT (IT Appeal No. 925/Mum/2007 order dated 19th July, 2013) cited by the ld. Counsel for the assessee, similar facts were involved inasmuch as the assessee had applied TNMM to show that the margin earned by it from the relevant transactions with its AE was higher than the comparable com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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