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TMI Blog2024 (3) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;Ld. AO'), under Section 143(3) r.w.S 144C(13) of the Income-tax Act, 1961 ('the Act'), on the grounds as set out herein: The following grounds are independent of, and without prejudice to, one another: Transfer Pricing Adjustment relating to international transaction pertaining to receipt of information technology enabled services and payment towards K-Net charges -INR 2,17,53,662 1. The Ld. AO [along with the Learned Transfer Pricing Officer (Ld. TPO') under the directions of Hon'ble Dispute Resolution Panel ('DRP') on facts and in law, in determining the arm's length price for receipt of information technology enabled services and payment towards K- et charges and thereby making an adjustment of I R 2,17,53,662 to the taxable income of the Assessee. In doing so, having grossly erred in: 1.1. ignoring that the same methodology used in abovementioned international transactions i.e.Profit Split Method ('PSM') has been agreed for other covered transactions in Bilateral Advance Pricing Agreement ('APA') between the India and the USA for the relevant assessment year 1.2. proposing adjustment on alleged intra group services p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fNR 82,38,600 made during the assessment proceedings for A Y 2017- 18. 3. On the facts and circumstances of the case and in law, the Ld. AO has erred in not allowing complete credit of foreign taxes paid by appellant, by completely disregarding the decision of Karnataka High Court in the case of Wipro vs DCIT [20 IS] 62 taxmann.com 26 (Karnataka) and other judicial precedents placed by the appellant on record on the ground that revenue's SLP against the decision of Kamataka High Court in the case of 'Wipro Limited' has been admitted and pending before Supreme Court for disposal. 4. On the facts and circumstances of the case and in law, the Ld. AO has erred in not accepting correction claim of appellant basis fact that the appellant's application admitted by the Hon'ble Authority for Advance Rulings (AAR), is pending for disposal on merits, as on the date of passing the final assessment order U/S 143(3) r.w.s. 144C(13) of the Act and that appellant's writ petition is pending before High Court adjudication for transfer of matter to Board of Advance Ruling. Other grounds 5. On the facts and circumstances of the case, the Ld. AO erred in not allowing TDS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s AP A (the "Covered Transactions") are as follows: A. Payment of royalties for intangibles property (IP) licensing: ATK-US licenses trademarks and trade names. certain marketing intangibles. and its proprietary Knowledge Management System ("KMS") software platform to the A. T. Kearney Affiliates. including ATKBO; and B. Network services transaction: A.T. Kearney affiliates provides network services to other A.T. Kearney affiliates that promote and strengthen the overall netwark. The netwark services include cross border services provided by country officers. attracting and retaining officers and talent across the global network by guaranteeing competitive compensation. guaranteeing a global presence. allowing for a flexible professional capacity pool. and supporting the creation and maintenance of global eminence. As A. T. Kearney Affiliates. both ATK-US and the Applicant can be either the net recipient or payer of the network services fee in any given tax year. Network services indirectly include contracted management consulting services as well as corporate and administrative services." 9. The term of the agreement is as under: "The Agreement shall apply to consecutive fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal has been preferred by the appellant/ revenue with the Supreme Court, against the judgment rendered by the Karnataka High Court in the Wipro Ltd. case. 10. We are also informed that the Special Leave Petition i.e., SLP No. 8381/2021, preferred by the appellant/revenue on 25.05.2021, was admitted on 14.12.2021. 10.1 Given this position, it is made clear that insofar as proposed questions 'C', 'D', and E are concerned, the appellant/revenue will have the liberty to approach the court for reviving the instant appeal, in case it were to succeed in the aforementioned matter pending adjudication in the Supreme Court. 11. The appeal is disposed of in the aforesaid terms." 14. Respectfully following the decision of the Hon'ble Jurisdictional High Court [supra], Ground Nos. 2 to 4 are allowed as per the above directions. 15. Ground No. 5 relates to short credit of TDS. 16. Having heard the rival contentions, we are of the considered view that this issue needs verification and we direct the Assessing Officer to verify the details of TDS and allow credit as per provisions of law. Ground No. 5 is allowed for statistical purposes. 17. Ground No. 6 is prem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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