TMI Blog2015 (3) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... t in any way shift any profits out of India, since both the entities are taxable entities in India and the question of applying the T.P. provisions does not arise. Since the TPO does not have any jurisdiction to examine the domestic transactions in the impugned assessment year, the DRP has rightly held that stand of the TPO fails. Domestic transactions cannot be examined under T.P. provisions for the impugned assessment year - Decided against revenue - ITA. No.198/Hyd/2014, ITA. No. 234/Hyd/2014 - - - Dated:- 25-3-2015 - B. Ramakotaiah (Accountant Member) And Asha Vijayaraghavan (Judicial Member) For the Revenue : G. Aparna Rao For the Assessee : S. Raghunathan ORDER B. Ramakotaiah (Accountant Member) These two ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue was pending before the ITAT and requested for keeping tax demand in abeyance. The DRP while accepting the objections of the assessee on the management fee however, did not interfere with the disallowance of depreciation as the matters are pending before the ITAT in appeal on the order under section 263 for A.Y. 2006-07. Assessee is aggrieved on the disallowance of depreciation whereas, A.O. is aggrieved on the direction of the DRP to delete the disallowance of management fee. 3. At the outset both the Counsels agreed that the issues are covered. As far as the issue of depreciation contested in assessee s appeal is concerned, the ITAT vide its order in ITA.No.840/Hyd/2012 for A.Y. 2006-07 dated 16.01.2015 has not upheld the proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he domestic transactions in the impugned assessment year, the DRP has rightly held that stand of the TPO fails. Since the decision of the DRP is in tune with the pronouncements of the ITAT on similar issues that domestic transactions cannot be examined under T.P. provisions for the impugned assessment year, we have no hesitation in upholding the order of the DRP. 5. The Revenue has raised a ground that assessee did not substantiate the claim. As seen from the details placed on record, assessee did substantiate claim before the authorities and therefore, we are of the opinion that there is no merit in Revenue appeal. 6. In the result, assessee appeal is allowed and Revenue appeal is dismissed. Order pronounced in open Court on 25.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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