9911796707
TMI Blog2022 (8) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... les it to claim the deduction. If the view adopted by the TPO is taken to logical conclusion, then no businessman will ever suffer loss. We, therefore, hold that the benefit test applied by the TPO cannot be approved. Having found that the assessee did receive intra group services from its AE, the next question is the determination of its ALP. The assessee has nowhere determined the ALP of transaction on individual basis. The TPO determined Nil ALP on the premise that since, the assessee did not receive any services, there was no question of making any payment in view thereof. We have overturned the impugned order on the question of receipt of services by holding that the intra group services were actually received by the assessee. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... method and claimed Rs.2,15,19,980/- as ALP at entity level. The TPO proposed upward adjustment by holding that the assessee did not prove receipt of services with proper documentation and evidences. The contention of ld. AR is that the TPO did not examine the issue in respect of any method but held no services and benefit received by the assessee which is not justified. We note that the assessee filed additional evidences before the DRP and to that effect, remand report sought from the TPO. The said remand report filed from Page Nos. 61 to 70 of Appeal Memo. Considering the said remand report, the DRP held that the evidences in respect of some charges were proved and no benefit derived by the assessee. Before us, the ld. AR filed paper book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and held the determination of ALP is to be made on transaction level because the said international transaction in respect of management support services is not intra group level. In our considered opinion, the TPO was fully justified in segregating the international transaction of intra group services from the other transactions because it is not interlinked with the other transactions. It is only in case of interlinked transactions that one can process them on aggregate basis. As international transaction of intra group services is totally different from the other transactions, we uphold the view of the TPO in segregating it and then processing it separately for ALP determination. 7. The AO/TPO took a view that the assessee did not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, hold that the benefit test applied by the TPO cannot be approved. 10. Having found that the assessee did receive intra group services from its AE, the next question is the determination of its ALP. The assessee has nowhere determined the ALP of transaction on individual basis. The TPO determined Nil ALP on the premise that since, the assessee did not receive any services, there was no question of making any payment in view thereof. We have overturned the impugned order on the question of receipt of services by holding that the intra group services were actually received by the assessee. In that view of the matter, the ALP of the international transaction needs to be determined afresh. We, therefore, set aside the impugned order and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
