9911796707
TMI Blog2017 (1) TMI 1724X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of management fee of ₹ 1.55 crore is unwarranted. We set aside the order of the AO on this issue and remit the issue to the file of the AO/TPO for re-adjudication of the issue and re-determination of the arm s length price in accordance with law. The assessee shall also be given an opportunity to produce all the relevant materials before the AO and the assessee shall co-operate with the AO for early determination of the arm s length price by the AO/TPO. Deduction u/s. 10A - HELD THAT:- Judgment of jurisdictional High Court in the case of CIT v Tata Elxsi Ltd. [ 2011 (8) TMI 782 - KARNATAKA HIGH COURT] wherein it was held that the expenses reduced from the export turnover should also be reduced from the total turnover. Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,672 The learned TPO/ DRP/ AO erred in not accepting the arm's length justification of the above mentioned payments using the Transactional Net Margin method. The learned TPO/ DRP/ AO erred in selecting Comparable Uncontrolled Price Method ( CUP ) as the most appropriate method for justifying the payments made by Safran Engineering Services India Private Limited towards the dedicated program manager, payment of information technology services, towards salary cost of deputed managing director and towards the management services provided by the associated enterprise for the benefit of Safran Engineering Services India Private Limited. The learned TPO/ DRP/ AO erred in not appreciating Safran Engineering Services India Priva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Turnover when they have reduced the same from Export Turnover. The learned AO has erred in not relying on the decision of the Jurisdictional High Court Karnataka in a batch of appeals, dated 30th August, 2011. C. Interest under section 234B 234D of the Act. The assessing officer has erred in levying interest under section 234B 234D of the Act The appellant craves leave to add, alter and modify the above grounds during the course of the appeal. For the above and any other grounds which may be raised at the time of hearing, it is prayed that the adjustments be dropped/deleted. 2. During the course of hearing, the ld. counsel for the assessee has contended that ground (b) relating to deduction u/s. 10A is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and after having analysed the same, the ALP may be determined. 4. The ld. DR did not object to this proposition as he admitted that some evidence was not taken into account by the TPO while determining the ALP of international transactions. 5. Having carefully examined the rival submissions, we find that undisputedly certain evidence filed by the assessee was not examined by the TPO while determining the ALP. Similar was the position in AY 2006- 07 where the Tribunal has restored the matter back to the AO/TPO to reexamine and re-analyse the evidence filed by the assessee in order to determine the ALP of the international transactions. The relevant observations of the Tribunal are extracted hereunder for the sake of referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities to consider the same before coming to any conclusion on merits. In view of the same, without verification of proper evidence, it not justified to come to the conclusion that payment of management fee of ₹ 1.55 crore is unwarranted. In view of the same, we set aside the order of the AO on this issue and remit the issue to the file of the AO/TPO for re-adjudication of the issue and re-determination of the arm s length price in accordance with law. The assessee shall also be given an opportunity to produce all the relevant materials before the AO and the assessee shall co-operate with the AO for early determination of the arm s length price by the AO/TPO. Needless to mention, the assessee shall be given a fair opportunity of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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