TMI Blog2018 (8) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... of the international transaction of receipt of intra-group services. While applying the CUP method, it was obligatory upon him to bring on record some comparable uncontrolled instances availing similar services as per the mandate of rule 10B(1)(a)(i). Not even a single comparable case has been brought on record to facilitate a comparison between the price for the services availed by the assessee vis-à-vis that paid by other comparables in similar circumstances. The matter is remitted to the file of AO/TPO for determining the ALP of the international transaction of ‘Receipt of business support services’ de novo as per law after allowing a reasonable opportunity of hearing to the assessee. - ITA No.1153/Del/2015 - - - Dated:- 21-8-2018 - SHRI R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Shri Vishal Kalra, Advocate And Ms Reema Malik, CA For The Department : Shri Sanjay I Bara, CIT, DR ORDER PER R.S. SYAL, VP: This is an appeal filed by the assessee against the final assessment order dated 30.12.2014 passed by the Assessing Officer (A.O.) u/s 143(3) read with section 144C(13) of the Income-tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined the ALP of Information technology services at ₹ 48 lac and Nil for all the remaining eleven services which resulted into recommending transfer pricing adjustment of ₹ 25,74,03,817/- against the transacted value of ₹ 26,22,03,817/-. The assessee remained unsuccessful before the Dispute Resolution Panel (DRP) on this issue. This led to the making of addition of ₹ 25.74 crore and odd in the final assessment order which has been assailed before the Tribunal. 4. We have heard both the sides and perused the relevant material on record. It is observed that the assessee claimed to have received twelve different services viz., Controllers, Human Resource; Corporate Law; Public affairs; Security; Procurement; Safety, health and environment; Tax; Treasury; Business advisory; Information technology; and Others including Medical Services. While dealing with Controllers services, the TPO held the same to be duplicate in nature despite the assessee s contention that it related to managing its accounts, finance, internal control and reporting issues. As regards Human Resource services, the assessee claimed to have made payment in lieu of its AE providing sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diverting the profits. Reverting to the facts of the extant case, we find that the assessee furnished some evidence in support of some of the services, though such evidence was not complete as has been recorded by the TPO in respect of other services, such as, Controllers, Corporate Law, Procurement, Treasury and Business Advisory. Thus, the international transaction of receipt of services entered into by the assessee with its AEs prima facie does not appear to be bogus, at least to some extent for which evidence was furnished. 6. It is found that the TPO rejected the TNMM as applied by the assessee and stated to have applied the CUP method for determining the ALP of the international transaction of receipt of intra-group services. While applying the CUP method, it was obligatory upon him to bring on record some comparable uncontrolled instances availing similar services as per the mandate of rule 10B(1)(a)(i). Not even a single comparable case has been brought on record to facilitate a comparison between the price for the services availed by the assessee vis- -vis that paid by other comparables in similar circumstances. 7. Even otherwise, we notice that the action of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wakefield India (P.) Ltd. (supra) , the TPO was required to simply determine the ALP of the international transaction, unconcerned with the fact, if any benefit accrued to the assessee and thereafter, it was for the AO to decide the deductibility of this amount u/s 37(1) of the Act. As the TPO in the instant case initially determined ₹ 48.00 lac as the ALP of the international transaction of ₹ 26.22 crore by holding that no benefit etc. accrued to the assessee and the AO made the addition without examining the applicability of section 37(1) of the Act, we find the actions of the AO/TPO running in contradiction with the ratio laid down in Cushman Wakefield (supra) . Following this decision and the discussion made supra , we are of the considered opinion that the impugned order cannot stand. The same is, therefore, set aside and the matter is remitted to the file of AO/TPO for determining the ALP of the international transaction of Receipt of business support services de novo as per law after allowing a reasonable opportunity of hearing to the assessee. The ld. AR has undertaken to extend full co-operation to the AO/TPO by supplying all the relevant material ..... X X X X Extracts X X X X X X X X Extracts X X X X
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