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TMI Blog2023 (4) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2011-12. Notably, while deciding identical issue in assessee s case in assessment years 2007-08, 2009-10, 2010-11, 2011-12 and 2012-13 [ 2019 (2) TMI 796 - ITAT DELHI] the coordinate Bench, deleted identical additions stating TPO accepted that services were rendered and received by the assessee. Once the rendering and receiving of the services were not disputed which is supported by the evidences, the TPO is not correct in holding that arms length value of the management fee is Nil and accordingly making an upward adjustment. Therefore, the finding of the TPO is not correct and this addition does not sustain. DRP ignored the evidences filed by the assessee demonstrating receipt of management services by merely stating that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 as not pressed. 4. In ground No.2 to 4, the assessee has challenged the decision of the departmental authorities in determining the value of the international transaction relating to management services availed from the associated enterprises at Nil. 5. Briefly the facts relating to the issue in dispute are, the assessee is a resident corporate entity engaged in the business as a logistic service provider, offering comprehensive freight and forwarding services. In the assessment year under dispute, assessee entered into various international transactions with the overseas Associated Enterprises (AE) one amongst them being management services availed from the AE. Assessee benchmarked the transactions as per the statutory provision a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Counsel appearing for the assessee submitted, the issue is squarely covered by the decision of the Tribunal in assessee s case in assessment year 2007-08, 2009- 10, 2010-11, 2011-12 and 2012-13. He submitted, though Ld. DRP has accepted that the assessee has received management services from the AE however it has upheld the adjustment by merely saying that no benefit has accrued to the assessee. Proceeding further, he submitted that now it is fairly well settled that the TPO cannot apply the benefit test while determining the ALP of intra group services. In this context, he relied upon the decision of the Tribunal in case of Avery Dennison India P. Ltd. Vs. ACIT in ITA No. 4868/Del/2014 dated 04.12.2015 and the decision of the Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... io for all global and local applications Global Service Management 86 Governance - overhead department, Including the call center support to CEVA affiliates worldwide Global IT - acting link between global demand (business need) and demand (global IT organization) Business Development Global Sector Leaders for Automotive, Industrial, Consumer Retail, Energy, Technology focus sectors Global Key Account Managers for Century accounts Finance Design and operation of finance processes within the group Finance Planning Analysis Treasury - manage bank relations, cash management, etc Global tax support Insuranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Succession planning, leadership development, 'compensation and benefits, executive recruitment, labour issue advice, support for expatriate assignments, HR information systems, etc Global Commumcation Media relations Investor relations Global branding Internal communication External communication through website 9. It is further relevant to observe, this is not the first year wherein the assessee received such services and made payment to the AE. The TPO himself has referred to similar nature of transaction made in assessment years 2012-13, 2013-14 and 2014-15. Thus, the assessee has made payment towards identical nature of transaction in va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The TPO accepted that services were rendered and received by the assessee. Once the rendering and receiving of the services were not disputed which is supported by the evidences, the TPO is not correct in holding that arms length value of the management fee is Nil and accordingly making an upward adjustment. Therefore, the finding of the TPO is not correct and this addition does not sustain. Ground No. I is allowed. 10. Facts being identical in the impugned assessment year, the aforesaid decision of the coordinate Bench will squarely apply. 11. In any case of the matter, while the TPO has observed that the assessee failed to demonstrate that services were actually received and benefit has accrued, learned DRP has acknowled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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