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TMI Blog2018 (1) TMI 1711X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering international transactions in the assessment year not covered by the APA, but subject to the condition that the nature of international transactions should be identical in both the situations. In view of the fact that the assessee has entered into APA with the Board, for the subsequent assessment years, without commenting on the merits of the adjustment made, we deem it appropriate to remit this file back to Commissioner of Income Tax (Appeals) to re-adjudicate the issue, in accordance with the aforesaid directions. Accordingly, the appeal of the assessee is allowed for statistical purpose. - ITA No.1398/PUN/2015 - - - Dated:- 19-1-2018 - SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM For the Assessee : Shri Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent company of Tieto group has set up a centralized mechanism for provision of Management Support Services (MSS) to all the group entities. The parent company has formed a central management team of highly qualified personnel with wide expertise in diverse fields. The assessee has also received services from the expert panel set up by the parent company for rendering software development services to its AEs. The costs incurred in providing the support are allocated to the group entities. The assessee is following an aggregation approach and as such MSS transactions are integrated with provision of Software Development Services. During the course of assessment proceedings, the Transfer Pricing Officer (TPO) accepted all international transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2012-13 again the TPO accepted transaction value of MSS fee paid by the assessee to its AE to be at arm s length. Reference was made to order of TPO dated 29-01-2016 in assessment year 2012-13 at page 705 of the paper book. 2.3 The ld. AR submitted that the assessee has entered into Advance Pricing Agreement (APA) u/s. 92CC of the Act with CBDT on 18-07-2016 for the assessment year 2015-16. The said APA also applies to four rollback years starting from assessment years 2011-12 to 2014-15. The ld. AR submitted that the nature of transactions in the assessment year under appeal are identical to the one that are covered under APA agreement. Therefore, the TP adjustment in respect of MSS should be made in accordance with the said agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in appeal is primarily aggrieved against TP adjustment of Rs.3,15,52,252/- in respect of payment of MSS fee paid by the assessee to its AE. The contentions of the assessee is that in the past as well in the subsequent assessment years payment of MSS fee by the assessee to its AE has been accepted by the TPO/DRP at arm s length. It is only for the assessment year under appeal that the TPO has raised doubt over rendering of such services by AE to assessee. The ld. AR in support of his contention has furnished copies of order of TPO passed u/s. 92CA(3) of the Act in the assessment years 2008-09, 2009-10 and 2012-13. The assessee has also filed a copy of directions of DRP for assessment year 2010-11 wherein the adjustment made by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PA. 6. Now, the question arises, whether the terms and conditions set out in APA can be applied in the assessment year which is not part of APA. We find that the Co-ordinate Bench of the Tribunal in the case of M/s. Abicor Binzel Production (India) Pvt. Ltd. Vs. Dy. Commissioner of Income Tax in ITA No. 139/PN/2014 for assessment year 2009-10 decided on 12-08- 2016, after taking into consideration APA has remitted the issue back to the file of TPO to decide the issue afresh, in accordance with the terms and conditions of the APA. The relevant extract of the findings of Tribunal in the said case are as under : 8. The perusal of grounds of appeal reflects that the assessee is in appeal on account of transfer pricing adjustment made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho shall consider the plea of assessee and shall after obtaining report from the TPO in this regard, decide the issue in accordance with law. Reasonable opportunity of being heard shall be afforded to the assessee while deciding the issue. The grounds of appeal raised by the assessee are thus, allowed. In respect of the balance additions, no specific ground of appeal has been raised nor any arguments have been made by the learned Authorized Representative for the assessee, hence the same are not disturbed. The assessee has also drawn our attention to various decisions to contend that APA has persuasive value for the year not covered by APA and the Revenue Authority s cannot take different view for the years covered in APA vis- -vis no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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