9911796707
TMI Blog2024 (6) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Indian entities, was not justified as they fall outside the purview of Indian Transfer Pricing provisions - Whether MGSI's domestic operations do not come under the ambit of Indian Transfer Pricing provisions and hence, the costs pertaining to the same should not be included while computing transfer pricing adjustments? HELD THAT:- As if we read paragraph 5 along with the MAP then it is clear that the assessee has transactions with US and domestic transactions. However, the law is fairly settled that the ALP should be determined in respect to the international transactions falling in Chapter X of the Income Tax Act. The determination of the TP adjustment for domestic transfer pricing is to be dealt in accordance with law. In our vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently, the case was selected for scrutiny under CASS. Thereafter, notices under Sections 143(2) and 142(1) issued. In response, assessee has submitted the information called for through ITBA Portal from time to time. During the course of scrutiny, the case was referred to the TPO u/s 92CA of the Act for determination of Arm s Length Price. Thereafter, the TPO proposed transfer pricing adjustment of Rs. 95,16,40,000/-. On receipt of the order u/s 92CA(3) from the TPO, draft Assessment Order was completed on 25.12.2019 and the sum proposed by the TPO was added to the income of the assessee. 3. Aggrieved with such draft assessment order, assessee company filed objections with the Dispute Resolution Panel (DRP), who passed the order on 12.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the addition with respect to US related assessment has been resolved under MAP and the issues with respect to Non-US related adjustments are not, as the same pertaining to domestic transactions. For that purposes, ld. AR has drawn our attention to page 516 of the paper book where the bifurcation of the Revenue has given as under: 7. Further, ld. AR has drawn our attention to page 528 of the paper book where the Schedules 16 and 17 are reproduced. 8. On the basis of the above, it is submitted that since the issue with respect to domestic services referred by the assessee to the Indian entities which is clear from Page 536 of the paper book wherein in table 28.2, it was mentioned as under : 9. On the basis of the above table, the ld.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take which requires rectification. Hence, the concern of the taxpayer vide its petition u/s 154 is addressed accordingly. The final adjustments after giving effect to the DRP order are as under: As per the directions of Hon'ble DRP , Adjustment towards Software Development Services is Rs. 91,33,00,000/- and therefore the Total adjustment is Rs. 91,33,00,000/- . 10. He has also drawn our attention to page 331 where the ALP was calculated after factoring into the domestic Revenue earned by the assessee. The sum and substance of the argument of the assessee is that since the MAP Resolution has already been arrived between the India and US entity, therefore, the adjustment made towards domestic transactions is not sustainable. 11. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . TPO /AO. Part II Corporate tax matters 4.That on the facts and in law, the Ld. AO was not justified and has erred in not considering claim of TDS credit of Rs. 5, 19,455 made by the Company during the assessment proceedings and not considering the directions of Ld. DRP in relation to grant of TDS credit. 5. That on the facts and in law, on disposal of this appeal material adjustment would be required in computing total income, tax, interest under section 234B of the Act. Necessary directions may please be given to the Ld. AO in this regard. 12. At the time of argument, the assessee has only restricted his above argument to the modified ground no.3 which is as under : 3 That on facts and in law, the Ld. DRP and Ld. TPO/AO erred by incorrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusion of TDS payment made on stock awards. The application was technically rejected on the ground that the same will be considered while giving effect to the order of Hon'ble DRP. However, it is seen that Hon'ble DRP vide its order under reference, (para 2.3.17) has categorically stated as under: The TPO has correctly assumed the total benefits granted to the employees of the assessee at Rs. 29,61,94,038 (22,38,17,006 + 7,23,77,032) and added to the total operating cost of the assessee In view of the above findings of Hon'ble DRP, the undersigned hereby confirms that there is no mistake which requires rectification. Hence, the concern of the taxpayer vide its petition u/s 154 is addressed accordingly. The final adjustments ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
