2022 (8) TMI 908

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..... n. 3. Ground Nos. 2 to 6 raised by the assessee challenging the action of TPO/DRP in not appreciating the documentary evidences, remand report, etc. and determining the ALP at Nil in respect of international transaction of Management Support Services. 4. We note that the assessee entered into 12 international transactions amongst which the only dispute in respect of payment for receipt of Management Support Services to an extent of Rs.2,15,19,980/- vide ground Nos. 2 to 6. The assessee adopted TNMM as the most appropriate method and claimed Rs.2,15,19,980/- as ALP at entity level. The TPO proposed upward adjustment by holding that the assessee did not prove receipt of services with proper documentation and evidences. The contention of ld. .....

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..... nd market and sales and business development. Copies of documents as relied on by the ld. AR does not show receipt of services and correspondence from Email shows only at group level. The TPO/DRP has given ample opportunity to the assessee and the assessee failed to submit evidences in respect of administration and fiancé, communication and market and sales and business development and placed reliance strongly on the order of DRP. 6. The assessee determined the ALP at entity level but however the TPO disregarded the same and held the determination of ALP is to be made on transaction level because the said international transaction in respect of management support services is not intra group level. In our considered opinion, the TPO .....

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..... ces as well. 9. On the question of the TPO's view point about the arising of some benefit to the assessee because of the services, we find that the same is not correct. It is a settled legal position that arising or not arising benefit is not an essential criterion for claiming deduction as business expenditure. The mere fact that the assessee received the services, itself enables it to claim the deduction. If the view adopted by the TPO is taken to logical conclusion, then no businessman will ever suffer loss. We, therefore, hold that the benefit test applied by the TPO cannot be approved. 10. Having found that the assessee did receive intra group services from its AE, the next question is the determination of its ALP. The assessee has n .....

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