Transfer Pricing: Business Support Services Need Clear Distinction Between Cost Allocation and Actual Services Under Section 92CA

ITAT addressed transfer pricing adjustment regarding business support services between associated enterprises. TPO rejected assessee's TNMM method and entity-level benchmarking, favoring CUP method. Tribunal found insufficient evidence demonstrating actual service receipt, noting mere documentation (master agreement, work statements, invoices, emails) inadequate to establish genuine service provision. Tribunal determined services appeared to be shareholder cost allocations rather than distinct business services. Due to inadequate documentation distinguishing between cost allocation and actual services rendered, matter remanded to TPO for de-novo adjudication. Issue restored for fresh determination under transfer pricing provisions without prejudice from prior findings. Appeal allowed for statistical purposes. .....

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