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TMI Blog2006 (9) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... hich all the expenses incurred in connection with the transportation of cargo in both the countries are excluded - The remaining amount is distributed between the entity of origin country and the entity of destination country in equal share - the assessee has earned/paid revenue from/to its AEs in the same proportion, thus, the transactions have been recorded at arm's length price and there was no justification for making such addition – Relying upon ACIT vs. M/s Agility Logistics Pvt. Ltd. [2013 (9) TMI 645 - ITAT MUMBAI] - there is no reason to interfere in the order – Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... r country and then supplying it to the ultimate buyer. In so far as the activities in India are concerned, these are done by the assessee and the activities abroad are executed by certain foreign entities, with whom the assessee has entered into contracts for this purpose. In the like manner, such foreign entities also undertake shipping/airlifting of cargo from their respective countries. The activities in India, similar to which are performed by such foreign entities in their countries for the bookings made by the assessee in India, are done by the assessee for the bookings made by such foreign entities abroad. The total expenses incurred in India by the assessee and abroad by the foreign entities or vice-versa were combined and then redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TNMM. 4. It was argued before the ld. CIT(A) that both origin company and destination company owned comparable assets for providing similar functions and bearing comparable risk. It was further argued that the sharing of profit in equal ratio was perfectly justified because of the similarity in the functional profits of both the AEs. The ld. CIT(A) got convinced with the assessee's submission and deleted the addition. The Revenue has come up in appeal against such deletion. 5. We have heard the rival submissions and perused the material available on record. There is no discussion in the orders of the authorities below about the relation of such parties with the assessee with whom the assessee shared the revenues of freight and such transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the same proportion, in our considered opinion, the transactions have been recorded at arm's length price and there was no justification for making such addition. We do not see any reason to interfere with the impugned order. 7. The ld. Counsel for the assessee has placed on record copies of the orders passed by the Tribunal in the case of ACIT vs. M/s Agility Logistics Pvt. Ltd. for assessment years 2004-05 to 2006-07. In these two separate orders, the facts are almost similar whereby various agency agreements were entered into between the company of origin country and the company of destination country in the business of logistics service provider. The revenues were shared between the two in the ratio of 50:50. The Tribunal has acce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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