https://www.taxtmi.com/caselaws?id=310643 ITAT Pune ruled in favor of the assessee regarding transfer pricing adjustment for intragroup services. The TPO and DRP had disallowed payments made to an associated enterprise, claiming insufficient substantiation of service need and benefit. The tribunal held that questioning the necessity of services is beyond revenue authorities' purview. Following EKL Appliances Ltd precedent, expenditure need only be incurred wholly for business purposes, not necessarily resulting in profit. The TPO erred in wholesale disallowance and determining intragroup services cost as nil. The adjustment was reversed. en-us Mon, 05 Mar 2018 00:00:00 +0530 Sat, 04 Nov 2023 09:17:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310643 ITAT Pune ruled in favor of the assessee regarding transfer pricing adjustment for intragroup services. The TPO and DRP had disallowed payments made to an associated enterprise, claiming insufficient substantiation of service need and benefit. The tribunal held that questioning the necessity of services is beyond revenue authorities' purview. Following EKL Appliances Ltd precedent, expenditure need only be incurred wholly for business purposes, not necessarily resulting in profit. The TPO erred in wholesale disallowance and determining intragroup services cost as nil. The adjustment was reversed. Case-Laws Income Tax Mon, 05 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310643