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TMI Blog2018 (12) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly. Disallowance of 10% of the total staff welfare expenses - Held that:- While deciding the objection raised by the assessee in respect of adhoc disallowance of 10%, the DRP has directed the Assessing Officer to delete the same by holding that the disallowance has to be on some basis. There is no dispute that the books of account of the assessee are audited and no specific defect has been pointed out by the Assessing Officer/TPO. Therefore, in our considered opinion, adhoc disallowance is unwarranted and deserves to be deleted as was deleted by the DRP in assessment year 2012-13 - decided in favour of assessee. - ITA No. 755/DEL/2016 - - - Dated:- 17-12-2018 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KULDIP SINGH, JUDIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training. The TPO found that for these services, the assessee has made payment of ₹ 4.70 crores. The TPO was of the opinion that there was no reason why the assessee actually needed the services of expats on whose account the assessee is making reimbursement of ₹ 6.63 crores. The TPO further observed that no independent party would make separate payments for similar kind of services. The TPO concluded by holding that the ALP of this international transaction related to reimbursement of salaries of employees of the AE is NIL and accordingly, directed for upward adjustment of ₹ 6.63 crores. 6. The assessee objected the matter before the DRP but without any success. 7. Before us, the ld. counsel for the assessee out-ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. The decision relied upon by the ld. counsel for the assessee also support these 5 views. Since the authorities below have not considered these established question of law in right perspective while deciding the issue and have made and sustain an addition by determining the ALP of transaction relating to expat support services to be NIL, we set aside the matter to the file of the Ld. TPO to decide the issue afresh analyzing the submission of the assessee discussed above after affording adequate opportunity of being heard to the assessee and if he finds that the transaction is taxed neutral then it will not lead to erosion of tax based in India, We are also of the view that unless the TPO can identify a comparable uncontrolled case in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. DR fairly conceded to this. 7 15. We have carefully considered the order of the DRP for assessment year 2012-13 dated 21.09.2016. We find force in the contention of the ld. counsel for the assessee. While deciding the objection raised by the assessee in respect of adhoc disallowance of 10%, the DRP has directed the Assessing Officer to delete the same by holding that the disallowance has to be on some basis. 16. There is no dispute that the books of account of the assessee are audited and no specific defect has been pointed out by the Assessing Officer/TPO. Therefore, in our considered opinion, adhoc disallowance is unwarranted and deserves to be deleted as was deleted by the DRP in assessment year 2012-13. Ground No. 8 is all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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