TMI Blog2021 (1) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... l transactions entered into by the taxpayer with its AE qua professional consultancy services (information technology) and fee for management support services but TPO, for the reasons best known to him and to our mind to generate unnecessary litigation, proceeded to apply the CUP method by applying same reasoning applied in the earlier years. So, ld. CIT (A) has rightly deleted the additions by following the orders passed by the Tribunal and Hon ble Punjab Haryana High Court [ 2019 (12) TMI 1630 - PUNJAB AND HARYANA HIGH COURT] passed in taxpayer s own case. Consequently, the appeal filed by the Revenue is dismissed. - ITA No.3219/Del./2018 - - - Dated:- 22-1-2021 - SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns with its Associated Enterprises (AEs) as reported in Form 3CEB as under:- S.No. International Transaction Segment Value of transaction (INR) Most Appropriate Method Selected by KB India 1 Purchase of raw materials and consumables Manufacturing division 75,28,54,193 Transactional Net Margin Method 2 Sale of finished ( TNMM ) goods Manufacturing division 22,59,36,431 3 Purchase of capital items Manufacturing division 4,09,86,947 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,47,57,627 12 Reimbursement of miscellaneous expense to AEs Others 1,37,82,156 Other Method as per Rule 13 Reimbursement of 10AB miscellaneous expense from AEs Others 3,66,52,177 14 Interest on ECBs availed in FY 2011-12 Others 1,17,37,884 Comparable Uncontrolled Price Method ( CUP ) 4. Ld. TPO questioned two transactions undertaken by the taxpayer with its AEs viz. professional consultancy services (information technology) and fee for management support services to be not at Arm s Len ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eletion of addition of Rs.6,97,61,263/- by the ld. CIT (A) made by the AO on the ground that ld. CIT (A) has erred on facts and law by rejecting the CUP method applied by the ld. TPO/AO in order to benchmark the international transactions qua Intra Group Services (professional consultancy services and management fee for support services). 8. Ld. DR for the Revenue challenging the order passed by the ld. CIT (A) relied upon the order passed by the TPO/AO. However, ld. AR for the taxpayer contended that this issue is covered in favour of the taxpayer in its own case for Assessment Years 2008-09, 2009-10, 2010-11, 2011-12 2012-13 decided by the Tribunal. The Revenue has challenged the order passed by the Tribunal for AYs 2007-08, 2009-10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, the Hon'ble ITAT was right in holding that segregation of the transaction of Infra Group Services was not correct and permissible? 3.) Whether on the facts and in circumstances of the case and in law, the Hon'ble ITAT was right in ignoring the findings of the TPO/AO that services were not received by the assessee from A.E.? 7. It is the contention of Mr. Tajender Joshi, Ld. Counsel for the Revenue that the Tribunal had fallen in error in rejecting the Cup Method employed by the TPO and accepting the TNMM used by the assessee in its transfer pricing analysis. It was also argued that the ITAT has not passed the order as per the directions/ observations given by this Court in the order dated 06- 11-2015. He relied on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, the Transfer Pricing Officer had referred to any comparables to apply the Cup Method in the facts and circumstances of the case, the counsel could not indicate any instance where an independent entity had availed of services and had not paid any remuneration for the same. 10. In light of the above, the conclusion of the ITAT could not be faulted as the same was inconsonance with the provisions of the Act and the Rules. The contention of the Counsel for the revenue cannot be accepted as the Tribunal while upholding the TNMM Method has observed that the other methods prescribed under the Act namely the CUP or Cost Plus Method being not applicable in the facts and circumstances of the case, the Respondent Assessee could only reso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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