TMI Blog2017 (6) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... Sale and Marketing Activity Fees. The TPO has accepted all other transactions except the international transactions regarding Global Sale and Marketing Activity Fees. International transactions of the assessee are comprising of revenue receipt from the AE as well as revenue payment to the AE. Therefore in these facts and circumstances of the case, we find that when the other international transactions regarding revenue receipt from the AE are tested under the TNMM analysis then the transaction of fee payment by the assessee towards the services rendered by the AE should not be separately tested but all the international transactions having receipt from the AE and payment to the AE shall be clubbed together and then has to be analysed un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he directions of the DRP and pass the final order in pursuant to the directions of the DRP. Accordingly, we direct the AO to strictly give effect to the directions of the DRP and dispose of the petition filed by the assessee u/s 154 of the Act. - Shri Vijay Pal Rao, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Assessee : Shri Nageshwar Rao, Advocate. For the Respondent : Ms. Neera Malhotra, CIT (DR) (ITAT)-2, Bengaluru. ORDER PER SHRI VIJAY PAL RAO, J.M. : These cross appeals are directed against the assessment order dt.25.01.2015 passed under Section 143(3) r.w.s. 144C of the Income Tax Act, 1961 (in short 'the Act') in pursuant to the directions of the Dispute Resolution Panel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in examining the necessity and commercial expediency of payment made by the assessee as it was beyond the jurisdiction of the TPO. The DRP followed the decision of the Tribunal in assessee's own case for the Assessment Year 2007-08 and directed the TPO to determine the ALP by applying the method recognized under the Act. Further, there was a dispute regarding Most Appropriate Method (MAM) adopted by the assessee as Transactional Net Margin Method (TNMM) whereas the TPO applied CUP as MAM. The DRP after examination of the relevant facts directed the TPO to analyse the case law on the point and also give the benefit of comparability anlaysis for identifying the comparables. Therefore the DRP has not given the concluding finding on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges of material, commission income, rendering of software services, reimbursement of expenses and Global Sale and Marketing Activity Fees. The TPO has accepted all other transactions except the international transactions regarding Global Sale and Marketing Activity Fees. It is pertinent to note that the international transactions of the assessee are comprising of revenue receipt from the AE as well as revenue payment to the AE. Therefore in these facts and circumstances of the case, we find that when the other international transactions regarding revenue receipt from the AE are tested under the TNMM analysis then the transaction of fee payment by the assessee towards the services rendered by the AE should not be separately tested but all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal purpose. 6. Ground Nos.6 7 of assessee's appeal are regarding the foreign tax credit and TDS credit not granted by the Assessing Officer despite the directions of the DRP. 7. We have heard the learned Authorised Representative as well as learned Departmental Representative and considered the relevant material on record. The assessee's grievance is limited to the extent that while passing he final order the TPO/A.O. has not given the benefit of foreign tax credit as well as TDS credit in terms of the directions of the DRP. The assessee has also filed a petition under Section 154 of the Act which is pending disposal before the TPO/A.O. There is no quarrel on the point that the Assessing Officer is bound to follow the direc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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