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TMI Blog2021 (6) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee for A.Y. 2013-14. Therefore, the order of CIT(A) is justified. Thus, the grounds raised by the Revenue are dismissed. - ITA No. 580/PUN/2020 - - - Dated:- 3-6-2021 - SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER Assessee by : Shri R.D. Onkar Revenue by : Shri Kalika Singh ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the Revenue against the order dated 06-03-2020 passed by the Commissioner of Income Tax (Appeals)-6, Pune [ CIT(A)‟] for assessment year 2015-16. 2. This appeal was filed with a delay of 177 days. The assessee filed an affidavit explaining the reasons for delay. After hearing both the parties, we find that the reasons stated by the assessee ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o payment of fees under management and held the arm‟s length price of such domestic transaction treated as Nil. The CIT(A) in the impugned order at Page No. 3 in Para No. 7 deleted the said adjustment by placing reliance on the order of this Tribunal in assessee s own case for A.Ys. 2009-10 to 2014-15. 5. Having aggrieved, the Revenue is before us. The ld. DR, Shri Kalika Singh submits that the AO had disallowed the management fees u/s. 37(1) of the Act for the period involving A.Ys. 2009-10 to 2012-13. From A.Y. 2013-14 onwards adjustment u/s. 92CA(3) of the Act have been proposed holding that the price paid as specified domestic transaction is not at arm‟s length. The CIT(A) rather than relying on earlier orders should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AE should be commensurate with the services received and the price which would have been paid to the independent third party. He submits that section 40A(2) only determines as to whether the quantum of a particular expenditure is reasonable or not whereas TP provisions tests whether the claim of expenditure is at ALP or not. Section 40A(2) is only applicable to expenditure, transfer pricing provisions are applicable to both income and expenditure. He argued that the CIT(A) erred in relying the decision rendered by the ITAT on deductibility of expenses u/s. 37 of the Act in the context of section 92 of the Act. 7. Further, he referred to the decision of ITAT Bangalore and submitted that in the absence of any details in respect of the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ravel to and from and boarding and lodging expenses will be borne by Spicer India. AIPL will also assist in identifying the human resources required by assessee. 10. The second service is marketing. AIPL provides and organizes training programmes for Mechanics and has set up Mechanics Training School at Nasik. These programmes and facilities will be available to assessee for sponsoring Mechanics to promote familiarization with their products and other related aspects. AIPL will organize Dealer meets on regular intervals in every region once a year to impart technical knowledge and superiority of client companies product vis- -vis competition. These Dealer meets would be available for participation by assessee. AIPL will provides sales tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The TPO discussed the payment of Management Fee along with payment of Royalty jointly from para 15 onwards of his order. The assessee was show caused as to why NIL ALP of the Management Fee should not be determined. In response, the assessee submitted details being invoices; details of experts and facilities which were available for training to the employees; e-mail communications; and Manuals etc. The TPO did not find anything convincing and determined NIL ALP of the specified domestic transaction of payment of Management Fee. The DRP approved the action of the AO in the draft order, incorporating the transfer pricing adjustment. 13. We note that in order to arrive at such conclusion this Tribunal placed reliance in A.Y. 2013-14 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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