9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 206 - AT - Income TaxTP adjustment - IT and Management Support Charges - HELD THAT - Tribunal in assessee s own case for AY 2014-15 2022 (3) TMI 1528 - ITAT BANGALORE had restored an identical issue to the TPO to determine the ALP of the IT and Management support charges. Payment of IT support services and management support services are pertaining to the agreement and is binding for AY 2014-15 and also for the relevant assessment year. Restore this issue to the file of the TPO so that consistency can be maintained. 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. Ground allowed for statistical purposes.
Issues Involved: The judgment involves issues related to Transfer Pricing Adjustment for IT and Management Support Charges and Corporate Tax Issues regarding short grant of TDS.
Transfer Pricing Adjustment for IT and Management Support Charges: The assessee, a private limited company engaged in manufacturing, trading, and back office support services, filed a return for AY 2018-19. The case was selected for scrutiny, and the Transfer Pricing Officer (TPO) proposed a TP adjustment of Rs.2,69,17,970. The final assessment order confirmed this adjustment. The assessee raised objections before the District Resolution Panel (DRP), which upheld the TP adjustment. The assessee then appealed to the Tribunal, arguing that the payments made under 'IT and management support charges' were justified. The Tribunal found that the TPO had not substantiated that services were rendered by the associated enterprises (AEs) and directed the TPO to re-examine the matter considering the evidence provided by the assessee. The appeal was allowed for statistical purposes. Corporate Tax Issues (Short Grant of TDS): The assessee contended that there was a short grant of TDS in the final assessment order amounting to Rs.2,806. The Tribunal directed the Assessing Officer to examine this issue. In the judgment, the Tribunal addressed the Transfer Pricing Adjustment for IT and Management Support Charges by directing the TPO to re-examine the issue based on the evidence provided by the assessee. Additionally, the Tribunal ordered the Assessing Officer to look into the Corporate Tax Issue regarding the short grant of TDS. The appeal was allowed for statistical purposes.
|
