TMI Blog2018 (11) TMI 1879X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Tribunal, and as the assessee has proved the incurring of the expenditure on Management Fees, the addition, as made by the ld. A.O/TPO and confirmed by the Ld. CIT(A), stands deleted. - I.T.A. Nos. 2581/Chny/2017 & 122/Chny/2018 - - - Dated:- 14-11-2018 - Shri George Mathan, Judicial Member And Shri A. Mohan Alankamony, Accountant Member For the Appellant : Ms. Abhinaya Ramanujam, C.A. For the Respondent : Mrs. V.S. Sreelekha, CIT, D.R. ORDER PER GEORGE MATHAN, JUDICIAL MEMBER I.T.A. Nos. 2581/Chny/2017 is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)- 3,Chennai in appeal No.189/2016-17/A-3 dated 30.06.2017 for the assessment year 2013-14, and ITA No.122/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Comparable Uncontrolled Price (CUP) Method was applied. It was a submission that by applying the CUP method as it was found that there was no other comparable to that of the assessee, the ld. Assessing Officer /ld.TPO adopted the Technical Support Services more specifically the Management Services at Nil . The TPO accepted the claim of assessee in respect of the Operational Support Services and the reimbursements. It was a submission that the issue was now squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the case of M/s.Bonfigioli transmissions Private Limited., in I.T.A.No.2977/CHNY/2017 vide order dated 14-05-2018 wherein in para Nos. 8 to 10, it has been held as under:- 8. In respect of Ground Nos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee in his business, he could have fared better had he not incurred such expenditure. These are irrelevant considerations for the purpose of rule 10B. Whether or not to enter into the transaction is for the assessee to decide. The quantum of expenditure can no doubt be examined by the Transfer Pricing Officer as per law but in judging the allowability thereof as business expenditure, he has no authority to disallow the entire expenditure or a part thereof on the ground that the assessee has suffered continuous losses. The financial health of the assessee can never be a criterion to judge allowability of an expense ; there is certainly no authority for that. What the Transfer Pricing Officer has done in the present case is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur tabular statements furnished by the assessee before the Commissioner of Income-tax (Appeals) in support of the reasons for the continuous losses. There is no material brought by the Revenue either before the Commissioner of Income-tax (Appeals) or before the Tribunal or even before us to show that these are incorrect figures or that even on the merits the reasons for the losses are not genuine. It was a submission that similar expenses have not been claimed separately in the accounts of the assessee. It was submitted that assessee was entitled to its claim of expenditure. 9. In reply, ld. D.R submitted that corporate services expenditure cannot be aggregated. It was a submission that the order of TPO/A.O and direction of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In reply, the ld. D.R vehemently supported the orders of ld. TPO and the Ld. CIT(A). It was a submission that there was no need for the assessee to pay the Management Fees and Management Fees are more than technical services. It was a submission that the order of the CIT(Appeals) was liable to be upheld. 5. We have considered the rival submissions. As it is noticed that the issue in the appeal is squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the case of M/s. Bonfigioli transmissions Private Limited., referred to supra, respectfully following the decision of Co-ordinate Bench of this Tribunal, and as the assessee has proved the incurring of the expenditure on Management Fees, the addition, as made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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