2018 (6) TMI 1396

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..... nsider it appropriate to leave the said question of law open for consideration after appropriate orders are passed upon fresh enquiry by the learned Assessing Officer, upon such remand by Tribunal.
DR. Vineet Kothari And Mrs. S. Sujatha, J.J. Sri K.R. Vasudevan, ADV.- For the Appellant Sri Aravind. K.V., ADV.- For the Respondent JUDGMENT Heard the learned Counsel for the parties. 2. The Assessee has filed the present Appeal under Section 260-A of the Income Tax Act, 1961 ['Act' for short], aggrieved by the observations made by the learned Income Tax Appellate Tribunal in Paragraph-26 of the impugned Order dated 31.03.2016 for Assessment Years 2006-07 and 2007-08. 3. The issue involved before the learned Tribunal was to benc .....

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..... ed that assessee was selling its entire product line in India and there could not be any services rendered by M/s SKF Data Services in Sweden, for such business operations. According to him, payments were unrelated to business of assessee in India. What we find is that none of the lower authorities had carefully looked into the "make available" clause in Article 12(4) of the DTAA between India and Canada which was called into operation by the assessee. Lower authorities did not look into the applicability of the DTAA in relation to the alleged cost sharing passed on by M/s SKF Data Services, Sweden, to the assessee for the IT related services. Question whether any technical services were rendered by M/s SKF Data Services, Sweden, to the ass .....

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..... that bench marking of the international transactions u/s 92CA of the Act, is entirely different from allowance of disallowance of an expenditure u/s 37 of the Act. We have already set aside the issue regarding bench marking of group IT services rendered by SKF Data Services, Sweden, to the assessee, back to the file of the AO/TPO for consideration afresh. Irrespective of any addition made, under ALP pricing provisions, application of Section 40(a)(ia) of the Act can definitely be done by the AO. Since these two provisions apply in altogether different independent spheres, we do not find any merit in this ground taken by the assessee. Ground II (3) of the assessee stands dismissed." 7. Learned Counsel for the Assessee Mr. K.R. Vasudevan, u .....

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