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TMI Blog2014 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer/ TPO for verification and examination of the fresh evidence filed by the assessee. Disallowance of claim u/s 40(a)(ia) of the Act – Held that:- There are conflicting observations by DRP & AO on the aspect - the factual aspect requires verification whether the expenditure in question pertains to the assessment year 2005-2006 or to the assessment year under consideration and whether the same were disallowed in the assessment year 2005-06 for want of deduction of tax at source - order set aside and the matter remitted to Assessing Officer for limited purpose of verification – Decided in favour of Assessee. - ITA No.8249/Mum/2010 - - - Dated:- 26-4-2013 - R.S.Syal And Vijay Pal Rao , JJ. For the Appellant : Ajeet Kumar Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in circumstances of the case and in law, the Assessing Officer (AO), in an order passed u/s. 143(3) of the Income Tax Act for A.Y. 2006-07, has erred in making a disallowance of Rs. 99,37,274 under section 40 (a) (i) 40 (a) (ia) of the ITA. In doing so the AO has erred in holding that the evidence furnished by the appellant pertaining to the payment of TDS was for the period 1.4.2005 to 31.03.2006 was for the wrong period is factually not correct. 3. Ground No. 1 Regarding Transfer Pricing adjustment in respect of management fees paid by the assessee to its Associated Enterprise (AE). 3.1 The assessee is 100 % subsidiary of the Hyva Group B.V, Holland, which is in business of research and development, production and manufacturing, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he management fee paid by the assessee. The Transfer Pricing Officer (TPO) after considering the agreement in question has come to the conclusion that no worthwhile service is being rendered to the assessee under the management service agreement except for BANN/ SER supports for which the assessee is not required to make any payment. Accordingly TPO held that since no material benefits are being derived by the Indian entity by entering into this specific agreement the payment of management fee is not at an arm's length. Consequently, the TPO proposed an adjustment of Rs. 76,93,979/- on this account. After receiving the order of the Transfer Pricing Officer the AO issued the draft order inter alia proposed to make an addition of Rs. 76,93,97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the Assessing Officer/ TPO for verification and accordingly decide the issue. 5. We have considered the rival submissions as well as relevant material on record. The assessee has filed additional evidence containing in paper book 2 and 3 from page 80 to 134 which was not available before the authorities below. The assessee has forcefully contended that this new material which has been collected by the assessee subsequent to the impugned orders and this is a material evidence in support of the assessee's claim to show that the payment of management fee was paid by the assessee against the service rendered by the AE. In view of the above facts and circumstances of the case and in the interest of justice, we set aside this issue to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration, and there is no question of claiming these expenses in the profit and loss account. In support of his contention he has referred the details of the expenditure with the date of deduction of TDS and payment of TDS at page No. 76 and 77 of the Paper book and submitted that these expenses pertain to the proceeding assessment year. However, the assessee deducted the tax and also paid the same during the year under consideration therefore, the assessee has claimed deduction. 6.4 On the other hand, the Learned DR has relied upon the orders of the authorities below and submitted that the Assessing Officer has given a finding that these expenses have already been claimed by the assessee in the profit and loss account therefore, no separ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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