9911796707
TMI Blog2021 (10) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... related services; Finance related services; Health, Safety and Environment Control; Quality analysts; Supply base Analyst; Supply chain planners/Analysts; and Packaging Specialist - it becomes graphically clear that not only the nature of services rendered by Just Dial is different but also the business model on which it works is poles apart from that of the assessee. Whereas Just Dial receives subscription from the providers of the goods or services for hosting their products/services on its platform and the user has to pay nothing, the assessee is providing services to its AE and gets remunerated at a cost with mark up from the user of the service itself, namely, the AE. In view of such a divergence in the nature of services and business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llow a deduction of it, after allowing opportunity of hearing to the assessee. - ITA No. 3074/PUN/2017 - - - Dated:- 14-10-2021 - R. S. Syal, Vice President And Partha Sarathi Chaudhury, Member (J) For the Appellant : Ajit Kumar Jain For the Respondents : Shekhar L. Gajbhiye ORDER Per R. S. Syal, VP This appeal by the assessee is directed against the final assessment order dated 30.10.2017 passed by the Assessing Officer (AO) u/s. 143(3) r.w.s. 144C(13) of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2013-14. 2. The only issue raised through various grounds in the Memorandum of appeal is against the transfer pricing addition of ₹ 88,41,429/-. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is engaged in the manufacturing of turbochargers. It rendered Business Support Services to its one AE and received a sum of ₹ 15,52,55,349/-. The assessee's Transfer pricing study report provides the nature of services rendered by it under this transaction as consisting of Information Technology related services; Finance related services; Health, Safety and Environment Control; Quality analysts; Supply base Analyst; Supply chain planners/Analysts; and Packaging Specialist. On a pertinent query to furnish a copy of the agreement with the AE under which such services were rendered, the ld. AR submitted that no formal Agreement was entered into. In view of the fact that the TPO has not disputed the nature of services as Business su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in which they want themselves to be presented to the users. In a nutshell, Just Dial acts as a bridge between the users and providers of services and goods. Whereas the Providers have to pay to Just Dial for their enrolment, the user who seeks the details of providers of particular good or service need not pay anything. Page 30 of the Annual report of the company states that: Operating through multiple communication platforms, the company has emphasized more on ensuring simplicity of search across all platforms. The company has developed a fast, trouble free and easy-to-use approach on its entire search media platform to cater to the evolving requirements of its users . Page 13 of the Annual report states that: In order to address the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its AE and gets remunerated at a cost with mark up from the user of the service itself, namely, the AE. In view of such a divergence in the nature of services and business model between the assessee and Just Dial, we hold that this company is not comparable. Accordingly, Just Dial is directed to be excluded from the list of comparables. 7. To sum up, we set-aside the impugned order and remit the matter to the file of the AO/TPO for re-doing the ALP determination of the international transaction of `Provision of Business support services' afresh in terms of this order. 8. The assessee has raised an additional ground reading as under: That the Education Cess paid during the relevant Assessment Year be allowed as a deduction exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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