2018 (11) TMI 598

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....e learned Counsel appearing for the Revenue urges the following reframed questions of law :( i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing the claim of the assessee following the AS7 of the ICAI and by not appreciating the fact that the same is not notified the provisions of Sec.145 of the I.T. Act, 1961? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting overhead expenses @8.5% of the turnover is at Arm's Length Price without considering the fact that TPO has specifically given finding that the assessee could not produce evidence for service rendered as overhead expenses by the Joint Venture partners ? ....

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....he basis of comparables i.e. no benchmarking of the expenses. Reliance was also placed upon the Agreement between the JV partners and the assessee. Further, it held that details of overhead expenses were supported by the Auditor's Certificate of the JV partners and along with the detailed working. Thus, the assessment order to the above extent was set aside. (c) Being aggrieved, the Revenue filed an appeal to the Tribunal. The impugned order of the Tribunal examined the agreement entertained into between the JV partners and the assessee. It found that the agreement provides for overhead office expenses of the respective JV partners being allocated to the assessee to the extent of 8.5% of its turnover. Further, the impugned order of t....