TMI Blog2016 (12) TMI 1589X X X X Extracts X X X X X X X X Extracts X X X X ..... that the services are actually rendered by the AE. But the assessee had failed to discharge this onus lying upon it despite being asked to do so by the TPO. The TPO had especially invited the assessee company to produce the proof in support of the services rendered by AE. The appellant only had tried to prove this by producing some correspondence which does not prove that the services are actually rendered. The failure by the assessee to discharge the onus can be presumed that the assessee had no evidence to establish that services of management support are rendered by its AE in consideration to payment. The submission that the TPO had impliedly accepted the rendition of services cannot be accepted as there was no finding given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions cannot be accepted. - Decided against assessee. - IT(TP)A No.384/Bang/2013 - - - Dated:- 16-12-2016 - SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER Assessee by: Shri. P. J. Pardiwala, Sr. Counsel Revenue by: Shri. G. R. Reddy, CIT-DR-I O R D E R Per Inturi Rama Rao, Accountant Member This is an appeal filed by the assessee company directed against the order of learned Commissioner of Income Tax(Appeals), Bangalore dated 19-12-2008 for the assessment year 2005-06. 2. The appellant raised the following grounds of appeal: 3. Briefly the facts of the case are that the appellant is a company incorporated under the provisions of the Companies Act, 1956. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Thus it was submitted before the TPO that the Volvo Group had supported the appellant in brand creating, corporate identity and in protecting the brand identity in India. When the assessee was asked to produce the details of the expenditure incurred on the following, no details or evidences in respect of such expenditure were furnished by the appellant before the TPO: 1. Customer visits to various facilities of Volvo Group. 2. Mediaperson visits to Sweden 3. Visit of school children from India to Sweden 4. Sponsoring by Volvo Group several sports events 5. Brand surveys undertaken by Volvo Group in India 6. Knowledge sharing 7. Volvo Group shares product and market strategies 8. Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of rendition of services. Alternatively, he submitted that the transaction of payment of management support fee should be aggregated and be considered to be a single transaction and ALP should be determined by applying TNMM. On other hand, the learned CIT(DR) placed reliance on the orders of TPO and CIT(A) and submitted that the condition of rendition of services is sine qua non for allowing the same as a deduction. 10. We heard the rival submissions and perused the material on record. The issue in the present appeal is whether the AO/TPO was justified in adopting the ALP at Rs.Nil in respect of management and support services fee paid by the appellant to its AE. Primarily, the TPO determined the ALP as Nil for the following reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the rendition of services cannot be accepted as there was no finding given by the TPO that services are actually rendered. In fact, the TPO while summarizing this observation vide page No. 30 of his order vide column No.6 had specifically mentioned that the assessee had failed to prove that the services are actually rendered by AE. Furthermore the finding of the TPO that the invoice was raised much after the closure of the accounting year and the payment of management fee in nothing but siphoning of the profits from India with the intention of avoiding tax are serious enough to doubt the genuineness of transactions. The appellant had made no effort to controvert the findings of the TPO. Therefore, in our considered opinion the TPO/AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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