TMI Blog2023 (6) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... f its contention that it was in receipt of services from it AEs for making the above said IT and management support services payments. Ground allowed for statistical purposes. - IT(TP)A No. 900/Bang/2022 - - - Dated:- 16-3-2023 - Shri George George K., Judicial Member AND Shri Laxmi Prasad Sahu, Accountant Member For the Assessee : Shri K.R. Vasudevan Shri Ankur Pai, Advocates For the Revenue : Shri Sunil Kumar Singh, CIT-DR ORDER Per: George George K., J.M. This appeal at the instance of the assessee is directed against the final assessment order dated 25.07.2022 passed under Section 143(3) r.w.s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 (the Act). The relevant assessment year is 2018-19. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to in the order of TPO dated 30.06.2022 Rs.17,96,63,310/- Total Assessed Income Rs.17,96,63,310/- 4. Aggrieved by the final assessment order the assessee has filed the present appeal before the Tribunal. The assessee raised two issue before the Tribunal, namely IT and management support charges and short grant of TDS. We shall adjudicate the above issues as under. IT and Management Support Charges (TP Adjustment) (Ground 3.1 to 3.9) 5. The brief facts in relation to the above issue are as follows: - The assessee in its transfer pricing study aggregated the IT and management support charges with the manufacturing and trading segment for the purpose of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm's length. 8. The TPO held that the IT and management support charges were a class of transaction on its own and required separate benchmarking. The TPO observed that the assessee had not substantiated that the services have actually been rendered to it and certain tangible and concrete benefit has actually been derived by the assessee. The TPO further alleged that the assessee had not benchmarked the IT and management support charges and had failed to justify the functions rendered by the AE for the payments. The TPO also observed that uncontrolled independent enterprises will not be willing to pay similar charges to any third party. The TPO however while denying that services have been rendered by the AE to the assessee observed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the assessee had not received any benefit is factually incorrect. The learned A.R. placed reliance on various orders of the Tribunal in support of his contention. The case laws relied by the A.R. are as follows: - i) Ingersoll-Rand (India) Limited ITA No. 228/Bang/2015 AY 2010-11 ii) Ingersoll-Rand Services and Technologies Pvt Ltd. IT(TP)A No. 89/Bang/2016 AY 2011-12 iii) Bostik India Private Limited IT(TP)A No. 837/Bang/2016 iv) Cisco Systems Capital (India) Pvt. Ltd. Pvt. Ltd. IT(TP)A No. 801/Bang/2022 11. The learned D.R., on the other hand, relied on the decision of the Chennai Bench of the Tribunal in the case of Lite-On Mobile India (P) Ltd. vs. DCIT reported in (2022) 96 ITR (Trib) 352 (Chennai) and conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant assessment year. Therefore, we deem it appropriate to restore this issue to the file of the TPO so that consistency can be maintained. The TPO is directed to examine the issue afresh by taking into account the evidences filed by the assessee in support of its contention that it was in receipt of services from it AEs for making the above said IT and management support services payments. With these observations, we direct the TPO to re-examine the matter in line with the issue already pending before him for AY 2014-15 (restored by the Tribunal in assessee s own case for AY 2014-15 in IT(TP)A Nos. 103 790/Bang/2019, reported in 136 taxmann.com 298). Hence, ground Nos. 3.1 to 3.9 are allowed for statistical purposes. Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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