TMI Blog2020 (12) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... e factual matrix and functional profile of the assessee considered by the CBDT while determining the ALP in the APA, for the five Financial years 2015-16 to 2019-20 and for the rollback period i.e. FY 2012-13 to 2014-15? HELD THAT:- In our view the ALP determined and agreed to in the APA should necessarily be applied as the ALP, on the international transaction of IGS and R D services for the assessment year in appeal. While holding so, we have considered the various judgments one of which is of passed by the Hon'ble Delhi High Court in the case of Ameriprise India Pvt. Ltd.[ 2016 (3) TMI 1272 - DELHI HIGH COURT] . We direct the Assessing Officer to adopt the ALP determined in the APA as the ALP of the international transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and between the appellant before us with its associated enterprises (AE's). However, only international transactions pertaining to 'Management and Support Service Fee' (hereinafter referred to as the MSSF') for Infra Group Services (hereinafter referred to as IGS ) and R D services is under dispute before us. These transactions were referred to the Transfer Pricing Officer u/s. 92CA of the Act for computing Arm's Length Price (ALP), after obtaining due approval of the Pr. CIT, Kolkata-1, Kolkata. It was held by the TPO that the IGS performed by the AE of the assessee under MSSA falls into the category of stewardship activity and for the reasons given by the TPO, the Arm's length price of the IGS provided by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, including functional and risk profile of the company with respect to the year under appeal is identical to the facts and the functional profile of the assessee company for the year's covered by the APA and that the ALP agreed to between the Government and the assessee for these assessment years may be applied for the impugned assessment year also. At the time of hearing of the instant appeals, the Ld. Counsel for the assessee submitted before us that in the above background the ALP determined in the APA for different international transaction, for the APA period and the rollback period, may be applied for the earlier assessment year also as the facts are identical. He also relied on several orders of the ITAT and the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have heard both the parties and perused the materials available on records. The question arises as to whether, when the factual matrix including the functional and risk profile of the assessee with respect to these three years under appeal is similar, to the factual matrix and functional profile of the assessee considered by the CBDT while determining the ALP in the APA, for the five Financial years 2015-16 to 2019-20 and for the rollback period i.e. FY 2012-13 to 2014-15. In our view the ALP determined and agreed to in the APA should necessarily be applied as the ALP, on the international transaction of IGS and R D services for the assessment year in appeal. While holding so, we have considered the various judgments one of which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance pricing agreements is to protect the fair share of the revenue of the states in simple and efficient manner and to protect the tax base. Need for Advance pricing agreements are emerging out of current global complex economic situations and its impact on revenue of tax compelling governments to intensify and streamline their transfer pricing compliance efforts to reduce the disadvantage in staking their claim for tax. Higher risk of disputes may be reduced by the advance pricing agreements. On the same intentions and objects, the ld. TPO is also required to compute the ALP of the International transactions of the Assessee for this year. Therefore, the agreement entered into by CBDT with the assessee, which has considered all the aspect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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