TaxTMI 
TaxTMI 
2016 (10) TMI 539
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....the Act'). 2. The assessee has raised the following grounds of appeal:- 1. ''For that that the order of the Commissioner of Income Tax (Appeals) is contrary to law. facts and circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity., natural justice and fair play. 2. For that the order of the Commissioner of Income Tax (Appeals), passed merely 14 months of the only hearing is opposed to equity. natural justice and fair play and contrary to the instructions of the Board. 3. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the order of the Assessing Officer is without jurisdiction. 4. For that the Commissioner of Income Ta....
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....nd notice u/sec. 143(2) of the Act was issued. In compliance to notice, the ld. Authorised Representative of assessee appeared from time to time and furnished information. The ld. Assessing Officer found that the assessee has international transactions and reference was made to Transfer Pricing Officer for determining Arms Length Price. The ld. TPO issued notice u/s.92CA of the Act for determination of Arms Length Price in relation to international transactions. The ld. TPO on the basis of the transactions reported in Audit form under 3CEB, found the assessee company has international transaction, on segment wise aggregating to Rs. 40,26,63,930/-. The assessee company has adopted Transactional Net Margin Method (TNMM) and CUP method a....
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....ence from the year 2001 and ld. TPO observed that the company got orders from Citibank only to the extent of Rs. 1.25 crores which does not commensurate with the returns. The UK based company M/s. Acuma Solutions Ltd, was functioning with loss and company turned into profits by infusing funds. The assessee company is making attempts in shifting profits outside the country as the training was provided to the said set of employees and the beneficiary is the Associated Enterprise. The assessee company incurred Rs. 12 crores expenses in two years for training their employees but project obtained was only Rs. 1.25 crores. The ld. TPO relied on the decision of Gemplus India Private Limited, the Bangalore Bench of the Tribunal were held that the a....
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....gs alongwith evidence. The ld. Commissioner of Income Tax (Appeals) on the disallowance of Transfer Pricing (TP) transactions relied on the order of the TPO and concluded that the ld. TPO was legally correct in questioning the genuineness of payments made for training given to employees of subsidiary company and shifting of profits and is of the opinion that the addition made by the ld. Assessing Officer is appropriate. Further in respect of corporate grounds raised by the assessee No. 3, 4 & 5 applying the provisions of Sec. 40(a)(ia) of the Act were the ld. Assessing Officer made an addition of Rs. 50 lakhs for non deduction of TDS of professional payments and confirmed the same. Further, the ld. Commissioner of Income Tax (Appeals) grant....
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....fessional Services. The ld. TPO overlooked the details of international transactions i.e. Information technology services and support services, Professional Services, Inter-corporate advances, Recovery of expenses and Reimbursement of expenses aggregating to Rs. 40,26,63,930/-. Further, there is no proper findings by the ld. Commissioner of Income Tax (Appeals) in adjudicating the grounds raised before and prayed for allowing the appeal. 6. Contra, ld. Departmental Representative relied on the orders of Commissioner of Income Tax (Appeals) and vehemently opposed to the grounds. 7. We heard the rival submissions, perused the material on records, judicial decisions cited and paper book filed. The ld. Commissioner of Income Tax (Appeals) has....