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TMI Blog2017 (5) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... und of perversity ought not to be casually pleaded. It requires a detailed study of the entire record by the Appellant. In the present case, for instance, the ITAT after examining the agreement between the Assessee and its AE has agreed with the Assessee that the reimbursement of the infrastructure cost has no mark-up. Unless there is a specific plea to the effect that the said factual finding is perverse, the Court cannot, at the instance of a general plea of perversity, entertain such a ground of appeal by the Revenue. No substantial question law arises - ITA 266/2017 - - - Dated:- 3-5-2017 - S. MURALIDHAR CHANDER SHEKHAR JJ. Appellant Through: Mr. Dileep Shivpuri, Sr. Standing Counsel with Mr. Sanjay Kumar, Advocate. Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AEs CUP method was applied and the value of transaction was ₹ 138,837/-. 5. During the AY in consideration, the Assessee received from its AEs ₹ 13,67,95,724/- as cost recharge on account of spare capacity . The Assessee did not route this amount to its profit and loss account as it was only a reimbursement. The stand of the TPO, on the other hand, was that the Assessee had not placed any evidence in support of the claim that the expenditure was towards maintenance of spare capacity at the instance of the AEs. The Dispute Resolution Panel ( DRP ) held that the ALP of the receipts from the AEs should include all the costs and that the Assessee did not give sufficient reasons for excluding certain costs for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as international transactions for the purposes of transfer pricing, since there is no mark up on these reimbursements, it was the assessee s submission that these transactions are to be excluded for working out the operative margins. The assessee relied on the decision of the coordinate Hyderabad B Bench of the ITAT in HSBC Electronic Data Processing India Ltd. v. ACIT in ITA No.1624/Hyd./2010 for this proposition. After considering the rival submissions and following the principles laid down by the ITAT Delhi Branch in DCIT Vs. Cheil Communications India P. Ltd. (2010 TII-60-ITAT-Del-TP) by the Hyderabad Bench in Four Soft Limited Vs. DCIT in ITA No.1495/Hyd./2010 we are of the opinion that reimbursement costs should be excluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 12. In the present case, as is evident from the passage extracted hereinbefore from the impugned order of the ITAT, after the examination of the agreement the ITAT came to a definite factual conclusion as regards reimbursement of the infrastructure costs of the Assessee by the AE without any mark up. Thus the decision has turned purely on facts. 13. Mr. Shivpuri then contended that the impugned order of the ITAT was perverse. When asked to point out if there is any pleading in the memorandum of appeal to the above effect, Mr. Shivpuri referred to Ground-D in which there is a general plea that the impugned order of the ITAT is perverse and bad in law as it failed to consider the reasons provided for in the orders of Ld. TPO which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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