TaxTMI 
TaxTMI 
2020 (9) TMI 1176
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....vices. 3. Representatives of both the sides were heard at length, case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules and have also perused the judicial decisions relied upon by both the sides. 4. Briefly stated, the facts of the case are that the appellant-company is a wholly owned subsidiary of BG Asia Pacific Holdings Pvt. Limited. It commenced midstream gas marketing operations in India after obtaining the approval of the Foreign Investment Promotion Board [FIPB] of the Government of India to undertake marketing and distribution of natural gas as well as LNG. 5. As per Form 3CEB, the app....
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....services for which payment has been made. 6. Please state with documentary evidence as to when and how these services were requisitioned from the AEs. 7. Please state as to how the rate or payment for IGS has been determined at the time of entering in to the agreement? Please also furnish the basis thereof. 8. Please state as to whether any cost benefit analysis was done while entering into the agreement and while requisitioning the services for payment of IGS? a. If so the details of such cost benefit analysis should be furnished. The cost benefit analysis should include the expected benefit from the IGS vis a vis the payment made for the same. b. Please specifically state as to whether any benchmarking analysis was done at the t....
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....se intra group services would be treated as Nil by applying CUP method. 8. Vide reply dated 30.10.2014, the assessee explained the background of Intra-group services paid by it. In support, all the agreements entered into by the assessee company related to Intra Group Services obtained by it from the AEs during the year were filed. The assessee also identified services actually received by it. 9. Reliance was placed on several judicial decisions. The reply of the assessee was duly considered by the TPO but it did not find any favour with him who was of the opinion that the TPO is empowered to apply appropriate method for each class of transactions. As these services are a separate class of transaction, the same is to be analysed separatel....
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....vehemently stated that the assessee has a very small set-up and has no employees on its payroll and was fully dependent on the employees of BGEPIL for support services and because of such support, the assessee could record sales of Rs. 917 crores. 15. Further, the ld. counsel for the assessee pointed out that the recovery of payments from the assessee have been considered by BGEPIL as income in its books of accounts and the same was duly offered to tax in India at the tax rate applicable to foreign companies, i.e., 40% plus surcharge and the same has been accepted by the TPO in the case of BGEPIL. 16. The ld. counsel for the assessee concluded by saying that the entire upward adjustment deserves to be deleted. 17. Per contra, the ld. DR ....
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....preparation of financial statements, tax audit report, time sheets filled in by BGEPIL employees, 21. The TPO has grossly erred in appreciating the facts in true perspective when he held that the employees of BGEIPL sitting in UK cannot comply with tax provisions in India. The fact of the matter is that BGEPIL was rendering these services from its office situated in India and the employees were very much based in India. 22. The Tribunal in assessee's own case for A.Y. 2010-11 in ITA No. 1980/DEL/2015 on identical set of facts has deleted the adjustment made on account of disallowance of payment of management services and unit charges by the assessee to its AE. The relevant findings of the Tribunal read as under: "13. We have careful....
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....prospective customers or vendors, and public relations services. This Includes services such as that of commission agent, as well as information technology services Including but not limited to any service in relation to designing, development or maintaining of computer software, or computerized data processing or systems networking, or any other service in relation to the operation of computer systems." 16. Article 3 provides for consideration and the same reads as under: "3.1 In consideration of the Services provided by BGEPIL under Article 2, BGEPIL agrees to pay BGEPIL for all costs and expenses incurred by BGEPIL related to the provision of the Services plus a mark-up of 12% on all such costs and expenses. All payments under this a....