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2024 (3) TMI 373 - AT - Income TaxTP Adjustment - international transaction of receipt of intra-group services with its Associated Enterprises ( AEs ) - Analysis of the documents /evidence furnished with regard to services rendered - HELD THAT - We find that the issues involved in the appeal before us have been squarely covered in the assessee's own case for the past eight years. The orders of the Tribunal in the case of the assessee for assessment year 2007-10 to 2012-13 and for assessment year 2014-15 to 2016-17 have been perused 2016 (1) TMI 933 - ITAT DELHI , 2015 (12) TMI 1620 - ITAT DELHI , 2016 (9) TMI 1334 - ITAT DELHI , 2018 (10) TMI 1504 - ITAT DELHI , 2018 (6) TMI 1501 - ITAT DELHI , 2017 (7) TMI 1040 - ITAT DELHI as held it is not the case of no evidence, on the contrary, it is a case where voluminous evidences are being brushed aside holding that no evidence has been filed or are general in nature without appreciating that the services are integral part of the business carried on by the Appellant and it could not have been carried out business in India without the help of these services . - The Hon'ble Supreme Court has also dismissed the Special Leave Petition (Civil) filed by the Revenue 2023 (8) TMI 1439 - SC ORDER for assessment year 2009-10. In view of the factual contents and the decision of the Hon'ble Supreme Court in the SLP filed by the Revenue (supra), the appeal of the assessee is hereby allowed.
Issues Involved:
1. Assessment of income under normal provisions. 2. Validity of the order passed by the AO. 3. Adjustment to the Appellant's international transaction of receipt of intra-group services with its AEs. Summary: Issue 1: Assessment of Income Under Normal Provisions The AO assessed the income of the Appellant at INR 41,30,30,744, against the returned income of INR 16,10,50,670. The assessee contested this assessment, arguing that the AO erred in assessing the income based on the directions of the Dispute Resolution Panel (DRP). Issue 2: Validity of the Order Passed by the AOThe assessee claimed that the order passed by the AO was "bad in law and void ab initio." The Tribunal did not provide specific details on this issue but focused on the adjustments related to intra-group services. Issue 3: Adjustment to the Appellant's International Transaction of Receipt of Intra-Group ServicesThe AO, DRP, and TPO made an adjustment of INR 25,19,80,074, alleging that the intra-group services did not satisfy the arm's length principle. The assessee argued that this adjustment was erroneous for several reasons: 3.1. Ignoring the High Court's direction to verify the evidence afresh, uninfluenced by the Tribunal's observations. 3.2. Disregarding the Tribunal's acceptance of the need and benefit test for intra-group services and the matter being referred only for verifying the rendition of services. 3.3. Overlooking contemporaneous evidence submitted by the assessee for each kind of intra-group service received. 3.4. Ignoring previous decisions of the High Court and Tribunal, which deleted Transfer Pricing adjustments on intra-group services for earlier and subsequent assessment years. Tribunal's Findings:The Tribunal found that the issues in the appeal were covered in the assessee's own case for the past eight years. The Tribunal noted that the AO and TPO had not properly examined the evidence submitted by the assessee and had instead relied on previous years' observations. The Tribunal emphasized that each assessment year is distinct and must be decided based on the specific evidence for that year. The Tribunal referenced multiple orders from the ITAT and the High Court in the assessee's favor, including recent orders for AY 2012-13 and 2015-16, which accepted the assessee's contentions regarding the rendition of services and the composite nature of the agreement for intra-group services. Ultimately, the Tribunal allowed the appeal of the assessee, concluding that the adjustments made by the AO were not justified given the consistent findings in the assessee's favor for previous years. Conclusion:The appeal of the assessee was allowed, and the Tribunal directed that the adjustments made by the AO regarding intra-group services be deleted, affirming the consistent findings in favor of the assessee for the past eight years. Order Pronounced in the Open Court on 04/03/2024.
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