2015 (8) TMI 1473

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.....DRP had erred by disallowing the "Management fee" paid to parent company at Korea to the extent of Rs. 1,18,82,436/- while arriving at the Arm's Length Price (ALP) adopting CUP method. 3. The brief facts of the case are that the assessee is engaged in the business of manufacturing control cable, Antenna, feeder cable and ignition cabel etc. A reference U/s.92CA(1) of the Act was made by the Ld. Assessing Officer and thereafter the Ld. TPO determined the ALP by disallowing the management fee paid by the assessee to its parent company at Korea for Rs. 1,18,82,436/- by making downward adjustments. 4. The Ld. A.R. submitted before us that the assessee had incurred management fee of Rs. 1,18,82,436/- towards:- (a) New Customer de....

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....29,251 1,925,550 Management Service Agreement Fee 18,485,866   Royalty & Cess 35,266,506 17,948,061 Technical Disclosure fee 1,341,967 9,379,782 Wages 9,982,571 8,909,299 Total 93,670,402 71,884,079 SCHEDULE NO. 16 31.03.2010 31.03.2008 Administrative Overheads     Advt & Business Promotion 2,562,865 1,322,565 Communication Expenses 912,806 1,155,030 Interest And Finance Charges 3,988,697 6,147,380 Other.Administraiion Expenses 2,605,917 3,729,411 Audit Fees 150,000 108,000 Printing& Stationery 1,081,696 967,123 Loss on sale of fixed Assets   13,332 Rent 1,320,000 1,007,355 Repairs ....

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....The Ld. A.R. also conceded to the reply of the query raised by the Bench that the services rendered by the parent company to the assessee company are "Technical services" and not "Management services" and in the entire proceedings before the Revenue, the assessee as well as the Revenue had preceded on misconstrued facts. The Ld. A.R further submitted that the Revenue had demanded the proof for the services rendered by the parent company to the assessee company which is not humanly possible to comply with. The Ld.A.R therefore pleaded that, the operating cost of the comparable companies may be compared with the assessee company and if in the assessee companie's operating cost is less than the other comparable companies then the "Technical se....