9911796707
TMI Blog2024 (12) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... t the outset, the Ld.AR of the assessee submitted that in the year under consideration, the Transfer Pricing Officer (hereinafter in short 'TPO') made TP adjustment amounting to Rs. 1,06,37,66,707/- which involves international transactions entered into by the assessee company M/s. Mando Automotive India Pvt. Ltd., (hereinafter in short 'M/s. Mando') with its related Korean & non-Korean entities. Subsequently, according to the Ld.AR, the assessee company had filed an application invoking Mutual Agreement Proceedings (hereinafter in short 'MAP') provisions under Article 25 of the India Korea Double Taxation Avoidance Agreement in respect of the international transactions under taken by the company with its AEs in Korea. According to the Ld.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2013. (The agreement reached between the CBDT and the NTS would not serve as precedent for any other assessment year of this taxpayer.) 3. According to the Ld.AR, the assessee as per Rule 44G(6) of the Rules communicated assessee's acceptance of the resolution in writing to the CA in India and consequently, the AO has given effect to the order dated 29.06.2022 by holding as under: Adjustments made towards international transactions with Korean AE's Adjustment not covered under MAP Total transfer pricing adjustment after MAP resolution Relief TPO As per agreement 95,50,73,779 26,37,74,45 10,86,92,928 37,24,67,380 69,12,99,327 4. There was a relief provided to the assessee as per MAP resolution, an order giving effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easy reference, the chart below gives a bird's eye view of the TP issue which survives as under: Mando India's international transactions with Transaction adjusted as per TP order (AE cost) % to total Position in MAP resolution Korea AEs 3,787,735,853 89.78% Covered in MAP Non-Korea AES 431.066.281 10.22% Not covered in MAP 4,218,802,134 100% 5. For such a proposition (as raised in additional grounds supra), the Ld.AR cited the decision of this Tribunal in the case of Grundfoss Pumps India Pvt Ltd (IT(TP)A No.92/Chny/2019-AY 2015-16) and Bangalore Tribunal in case of Amazon Development Centre (India) Pvt. Ltd. (IT(TP)A No.76/Bang/2014- AY 2008-09) wherein such relief has been granted to Non-MAP transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 4.5 Upon careful consideration of factual matrix, it could be seen that the assessee has paid aggregate administrative fees of Rs. 1003.58 Lacs to Danish Entity as well as Singapore Entity. The substantial fees of Rs.884.44 Lacs has been paid to Danish entity which has been settled under MAP @50% adjustment. The fees paid to Singapore entity is Rs. 119.14 Lacs and the nature of the services is the same. Therefore, in our considered opinion, the same approach, as settled in MAP for Danish entity would be applicable for the fees paid to Singapore entity also. Therefore, we direct Ld. AO to restrict the adjustment to the extent of 50% of Rs. 119.14 Lacs and re-compute the income of the assessee. We order so. The appeal stands partly allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applied for the remaining 7.14% transactions as well. 4.5.3 This proposition finds support in the decisions of the ITAT, Mumbai Bench in the case of JP Morgan Services Pvt. Ltd. (supra) which has been followed by the co- ordinate bench of this Tribunal in the case of CGI Information System Management Consultants Pvt. Ltd. (supra). In this regard, the relevant portion at para 3.6 of the order in the case of JP Morgan Services Pvt. Ltd. is extracted hereunder- 3.6 We have gone through the arguments made by both the sides and also the material placed before us for our consideration. It is noted that letter dated 9th April 2015 in Fno. 480/13/2010-FTD-1 has been issued in the case of the assessee company under MAP proceedings for A.Y.2006- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Following the above decision of the ITAT, Mumbai Bench, in the case of JP Morgan Services Pvt. Ltd. (supra), we hold that the margin adopted for US transactions, in ITES Segment, as was decided in the MAP Resolution, shall be adopted for non-US transactions as well. The TPO/A.O. is directed accordingly. 8. After considering the totality of the facts as well as judicial precedents cited (supra), we are inclined to set aside the issue regarding adjustment made by the TPO in respect of international transactions of the assessee with non-Korean AEs (not covered by the MAP) which is restored back to the file of the TPO for consideration as to whether the international transactions of the assessee with non-Korean AEs are similar in the nature a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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