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TMI Blog2019 (6) TMI 1709X X X X Extracts X X X X X X X X Extracts X X X X ..... arm's length price of cost of Intra group services arose before the Tribunal in assessee s own case in assessment year 2009-10 [ 2018 (3) TMI 2014 - ITAT PUNE] held that where the authorities below had not raised any doubt over the genuineness of payments made by assessee to its parent company, then no adjustment could be made by applying the benefit test. Where the assessee had made payments to AE's for Intra group services at cost, then the authorities below had erred in determining the cost of Intra group services at nil and make the aforesaid adjustment. Thus applying the same parity of reasoning above, we reverse the orders of authorities below in applying CUP method to arrive at the arm's length price of transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 81,268/-. Sub ground 1.2: The learned A.O. / DRP erred in rejecting Transactional Net Margin Method (TNMM) adopted by the assessee company and applied Comparable Uncontrolled Price (CUP) Method for determining the ALP in respect of the payments made by the assessee company to its AE for the Intra Group Services rendered by the AE. Sub ground 1.3: The learned A.O. / DRP erred in holding that the assessee company was not required to make payment to its Associated Enterprises (AEs) in respect of marketing and administrative services and accordingly, the reimbursement of the expenditure by the assessee company was not justified and hence, the ALP of the said transaction was NIL. Sub ground 1.4: The learned A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company had submitted various evidences to prove the receipt of marketing and administrative services and the economic and commercial benefit derived by the appellant company and therefore, the determination of ALP of the said intra group services at INR Nil was not justified at all and the entire addition made should be deleted. Sub ground 1.9: The learned A.O / DRP failed to appreciate that: a. The appellant company had submitted independent evidences in form of certificate from Independent Accountant regarding the actual costs incurred by the AEs. b. The allocation of the costs by the AE on the basis of the revenue earned by the group units was correct. c. On the basis of the various evidences submitted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernational transactions pertaining to Intra group services provided by AE's to assessee. It was further pointed out by the learned Authorized Representative for the assessee that in assessment years 2010-11 and 2011-12 on the technical issue, the order passed by Assessing Officer/TPO was held to be invalid. Coming to the year under consideration, it was pointed out that the assessee had applied TNMM method and had aggregated the transactions along with other international transactions of purchase of raw material and the margins of assessee on aggregate basis were better than earlier years. 4. The learned Departmental Representative for the Revenue on the other hand, has placed reliance on the order of DRP. 5. We have heard the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and consequently, made an upward adjustment of ₹ 3.28 crores in the hands of assessee. 6. We find that similar issue of determination of arm's length price of cost of Intra group services arose before the Tribunal in assessee s own case in assessment year 2009-10. The Tribunal has deliberated upon the issue after hearing both the learned Authorized Representatives from para 9 onwards and has held that the payments were made by assessee to its parent company for providing various services in terms of agreement entered into and further in view of voluminous data to substantiate the services rendered by parent company which was furnished, there was no merit in the action of Assessing Officer/TPO in stepping into the shoes of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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