Transfer pricing nil ALP adjustment deleted where prior-year evidence established service rendition and earlier Tribunal finding remained binding

Nil ALP determination for PTSE, IT support and centralised support services was deleted because the year's facts were materially identical to the assessee's earlier year, where service rendition had already been found established from agreements, invoices, emails, cost allocation workings and third-party evidence. The Tribunal treated that earlier finding as binding in the absence of any stay or reversal, and held that mere pendency of the Revenue's appeal before the High Court did not dilute its force. The transfer pricing adjustment was therefore deleted in favour of the assessee.

---

---

Issues: Whether the transfer pricing adjustment made by determining the arm's length price of PTSE services, IT support services and centralized support services at nil was sustainable.

Analysis: The facts for the year under consideration were held to be materially identical to those in the assessee's own earlier year, where the Coordinate Bench had already examined the agreements, invoices, emails, cost allocation workings and third-party evidence and found that rendition of services was sufficiently established. The order further noted that mere pendency of the Revenue's appeal before the High Court did not dilute the binding force of the earlier Tribunal decision in the absence of any stay or reversal.

Conclusion: The nil ALP determination and corresponding transfer pricing adjustment were deleted, and the issue was decided in favour of the assessee.

---