TaxTMI 
TaxTMI 
2016 (7) TMI 1497
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.... " The grounds hereinafter taken by the Appellant are without prejudice to one another. 1. That the order passed by the learned Commissioner of Income Tax (Appeals) - I V , Bangalore , to the extent prejudicial to the Appellant, is bad in law and liable to be quashed. 2. That the learned CIT (Appeals) erred in upholding the rejection of economic analysis performed by the Appellant in the Transfer Pricing documentation which justified the arm's length nature of its international transactions. 3. That the learned CIT (Appeals) erred in upholding application of Comparable Uncontrolled Price (CUP) method as the appropriate method to determine the arm's length nature of payment of management fees disregarding application of Tra....
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.... AXA Technology Services India Pvt. Ltd. incorporated during the year 2005, is engaged in providing IT Infrastructure services to AXA Group operating companies. The company is set up under the Software Technology Park Scheme, AXA Tech India is engaged in the business of remote systems administration, data processing and general consulting services in the field of software, production of computer programmes and export of software data and is providing different types of back office support services in the insurance sector." 4. The assessee was providing Information Technologies Enabled Services (ITES) to its Associated Enterprise (AE) in addition to the services rendered to other entities in India. The financial as well as international t....
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.... 1,09,99,380 7,62,64,591 Less : Interest : Profit Before Tax Op. Profit /Cost % 30.56% The assessee bench marked its international transactions by consolidating ITES as well as Management Fees and worked out the operating margin at entity level and then compare the same with the comparable price. The TPO has also examined the management fees paid by the assessee separately and determined the ALP of the management fees at Nil. The TPO has questioned the justification of payment of management fees to the AE on the ground that the assessee has failed to prove that it derives economic benefit from the alleged management services. Thus the TPO / A.O applied the test of benefit obtained by....
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....ative has also pointed out that the department has also accepted the ITES as well as management fees as an integrated transaction under the advance pricing agreement dt.28.3.2016 under Section 92CC of the Act. Thus the learned Authorised Representative has submitted that when the department in principle has accepted the ITES and management fees as a composite transaction then the TPO/A.O cannot take a different view and make an adjustment by segregating the management fees from ITES. He has filed a copy of the Advance Pricing Agreement. 7. On the other hand, the learned Departmental Representative has relied upon the orders of the authorities below and submitted that the CIT (Appeals) has given a finding that the assessee has failed to p....
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....agreement wherein the services provided by the AE has been enlisted. Therefore, without giving a finding that the assessee has also incurred expenditure in respect of the same services over and above the management fees paid to the AE it cannot cannot be said that the assessee has not received the alleged management services. Thus only when it is found that the assessee has also incurred the expenditure on account of the same services and also paid the management fees to the AE then the TPO/A.O may come to the conclusion that the assessee has paid the management fees without availing the services from the AE. Even otherwise when the management fees paid under the agreement and there is no finding by the authorities below that the same servi....