TaxTMI 
TaxTMI 
2020 (11) TMI 337
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....Ansaldo STS, Netherlands. It has also been submitted by assessee that, Ansaldo STS, Netherlands transferred the equity shares held by it in assessee company to Ansaldo STS, Australia Pty Ltd. who became the immediate holding company w.e.f. June 2008. 3. At the outset Ld. AR submitted that, during the year under consideration assessee undertook various projects for installation and commissioning of signalling systems for Indian Railways. It has been submitted that these projects were procured by assessee by way of open tender floated by Government of India. Ld. AR submitted that assessee on receipt of tender, undertook the activity of supply of signalling systems and provided engineering design support services are akin to software develo....
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....t, show cause notice was consequentially issued to assessee to justify the claim of adjustments made under the licensed manufacturing segment being exchange fluctuation, bank charges, interest charges, management fee. Ld. AR also submitted that, Ld. TPO proposed such comparables that either did not have segmental details or were not functionally similar with assessee. 6. Ld. TPO thus aggregated exchange fluctuation, bank charges, management fees with the manufacturing segment and computed proposed adjustment being shortfall at Rs. 12,12,26,284/-. 7. Ld. AO while passing draft assessment order further disallowed a sum of Rs. 3,17,96,698/- being notional forex loss computed by Ld. TPO/AO while passing the draft assessment order by relyi....
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....ity of the expenses were with 3rd parties. 11. He also submitted that various documents that has been placed before this Tribunal by way of additional evidence under Rule 29 for admission, could not be filed before the authorities below due to circumstances beyond control. He submitted that these documents establish the losses incurred by assessee, was mainly due to delay in completion of the projects are not attributable to transaction entered with AE. 12. Ld. AR further submitted that during the Transfer Pricing assessment proceedings, Ld. TPO did not demonstrate the basis on which the comparables were selected in the show cause notice. He submitted that, Ld. TPO also has not discussed the FAR similarities of assessee with proposed ....
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....ion 92CA, Ld. TPO failed to follow the due process of law in respect of proposing comparables for computing the ALP of international transaction in manufacturing segment. Ld. TPO is therefore, directed to issue show cause notice with proposed comparables in accordance with law. 19. Also, in respect of bank charges, interest charges, management fees assessee should establish categorically based on cogent materials/evidences of how it should not be considered as operating for the purposes of computing margin of licensed manufacturing segment. 20. Assessee is therefore directed to file all relevant documents/evidences/information necessary to establish its claim in respect of aggregation/segregation of the costs alleged in the order pass....