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TMI Blog2020 (8) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... n of CUP method for determination of ALP of international transactions by the Assessing Officer. 3. Representatives of both the sides were heard at length. Case record carefully perused. 4. Briefly stated, the facts of the case are that the assessee is a wholly owned subsidiary of Volvo Car Corporation and is engaged in the business of importing of cars as completely built units for the purpose of distribution in the Indian market. This is the first financial year of the assessee's business operations. 5. During the year under consideration, the assessee has made a payment of Rs. 2,94,56,764/- to its parent company on account of management service fees on which taxes were deducted at source. The assessee earned margin of 1.59% from its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 disallowed by Assessing Officer ("AO")? 2. Whether similar management charges have been allowed by TPO as well as AO in subsequent year? 3. Whether appellant has received true-up adjustment amounting to 6,15,78,632from AE during the relevant financial year? 4. Whether non-payment of management charges would result in receipt of lesser amount of true-up adjustment consequently reduction of profit of appellant? 5. Whether appellant has deducted withholding tax and service tax on management charges paid to AE during relevant assessment year? 6. Whether details of services rendered by the AE and service agreement were submitted by appellant during the time of assessment proceedings? 7. Whether in circumstance mentioned above, "di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had not been paid by the appellant the true up adjustment received would have been Rs. 2,51,90,000/- only and the profits of the appellant would have been less than the profits returned by the appellant. (v) he cost benefit analysis has been furnished by the appellant during the remand proceedings. (vi) The details of services rendered by the AE have been shown in the service agreement which was duly provided by the appellant to the AO as is evident from the remand report. (vii) No adjustment on account of management services fee has been made by the TPO/AO in the assessment orders for A.Y. 2011-12 and A.Y. 2012- 13. 3.13 From the facts discussed above it is evident that the AO's observation that this expenditure has been debited t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived would have been Rs. 2.51 crores only and profits of the appellant would have been less than the profits returned but it. 14. The cost benefit analysis was furnished by the assessee during the remand proceedings but the Assessing Officer did not care to examine the same and now the ld. DR is asking for remand. But the ld. DR could not point out any factual defect in the findings of the first appellate authority. Considering the facts of the case in totality, in light of remand report and factual findings of the ld. CIT(A), and considering the treatment given in subsequent A.Y by the Transfer Pricing Officers, we do not find any reason to interfere with the findings of the ld. CIT(A). 15. In the result, the appeal of the Revenue in I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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