2018 (8) TMI 441

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....um of appeal, out of which ground No. 1 is general in nature and ground No. 6 pertaining to interest u/s. 234B is consequential in nature. The assessee has also filed an application on 30.07.2018 (Wrong date written on application as August 30, 2018) before the bench stating that the appellant has entered into an Advance pricing agreement (APA) with CBDT on 25.07.2018 (wrong date written in application as August 25, 2018) which is applicable to five consecutive years commencing from F.Y. 2014-15 to 2018- 19 and four consecutive rollback years commencing from F.Y. 2010-11 to 2013-14 relevant to A.Yrs. 2011-12 to 2014-15. It is also stated that the appellant is entitled to file modified return as per section 92CD(1) in accordance with the APA....

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....trating due deduction of taxes in the hands of seconded employees and recharacterizing such payments as FTS. 4.3. That on the facts and circumstances of the case and in law, the AO / DRP have erred in incorrectly placing reliance on the decision of the Delhi High Court in the case of Centrica India Offshore Pvt Ltd vs CIT [2014] 364ITR 336 ("Centrica"), holding that the AE was rendering technical services to the Appellant which are chargeable to tax in India in the hands of the AE. Disallowance under section 37(1) of the Act. 4.4. That on the facts and circumstances of the case and in law, the DRP directions are bad in law, to the extent of enhancement of income in relation to disallowance of expenditure amounting....

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....ikin Air conditioning (India) Private Limited ("DAIPL") is a private limited company incorporated under the Companies Act, 1956 and operates as a wholly owned subsidiary of Daikin industries Limited, Japan ("DIL"). During the subject assessment year, the Appellant was engaged in the following activities: * Purchase of air conditioners ('ACs') and other products from its associated enterprises ("AEs") for the purpose of resale in India, which are imported on a principle to principle basis; * Provision of after-sales services of air conditioners and other related activities; and * Manufacturing of air-conditioners for the purpose of selling to third party customers in India. The Appellant had set-up a fac....

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...., 2015, has dealt with the issue as under : * Upheld the adjustment made by TPO in relation to both distribution and manufacturing segment with certain directions granting minor relief. * Additionally, during the course of proceedings before the DRP, certain additional details / information were sought by the Panel in relation to international transaction of reimbursement of expenses, in order to ascertain the withholding tax liability of the Appellant on such remittances. The breakup of reimbursement of expenses as provided to the DRP is as under: Particulars Amount (in INR) Salaries 8,09,97,689 Consultancy expenses 3,68,01,315 Travel Costs 51,74,359 Total reimbursement by Appellant 12,29,73,....

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....ld that these payments come within the category of Fees for Technical Services (FTS), whereas the same relate to the payment to employees and necessary TDS has been deducted. Form No. 16 has been issued and quarterly TDS return has been filed. EPF has also been deducted from the salaries of the employees. The ld. DRP without verifying the documents submitted, upheld it as payment for FTS. He also submitted that the similar payments made by assessee in A.Y. 2010-11, 2012-13 to 2014-15 have been accepted by the Revenue. He requested that the mater should go back to the Assessing Officer for verification to ascertain the exact nature of payments to the employees. 5. The ld. DR relied on the orders of the authorities below and stated that th....