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TMI Blog2015 (7) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... , Addl. CIT O R D E R PER SHRI VIJAY PAL RAO, JM: This appeal by the revenue is directed against the order dated 24- 01-2012 of CIT(A) for the assessment year 2005-06. 2. The revenue has raised the following concise grounds; "1. The order of the ld.CIT(A) in so far as it relates t the following grounds is opposed to law and facts of the case. 2. The ld.CIT(A) erred in holding that intra grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .31% as compared to mean margin on cost of the comparables selected by the TPO at 10.11%. The TPO accepted TNMM as most appropriate method for determination of ALP in respect to all other international transactions except the payment for intra group services. The assessee is making the payment for intra group services with a markup of 5.8% whereas the TPO has determined the ALP in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of services which is contributed by the assessee, though the AE of the assessee has allocated the cost with the mark-up of 5.8%. The TPO has determined the ALP of group services at nil on the ground that the services has not resulted in any increase in the profit margin of the assessee. It is pertinent to note that the computation of ALP by the TPO at nil is contrary to the provisions of transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the current years margin at 33.31%. We find that for the assessment year 2008-09, the TPO has accepted the payment made for intra group services as under; " However, from the submissions made by the taxpayer and facts of case, it is seen that the payment is made towards 'cost contribution' and the taxpayer has also submitted the payment is in nature of 'reimbursement of allocated costs' which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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