2020 (2) TMI 1563

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....ee has raised the following grounds of appeal : 3. The Brief facts of the case are that the assessee company provides services to the group companies which include providing assistance in customization and implementation of software. Further registered under STPI Scheme and filed the Return of Income for the Assessment Year 2008-09 on 29.09.2008 with total income of Rs. 87,81,038. Subsequently, the case was selected for scrutiny and Notice under Section 143(2) of the Act was issued. In compliance, the learned Authorized Representative of the assessee appeared from time to time and submitted the details. The Assessing Officer found that assessee has international transactions exceeding the limit, and with the prior approval of CIT referre....

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....IT(Appeals) has not adjudicated on non-MAP activities and prayed for allowing the appeal. Contra, the learned Departmental Representative supported the order of CIT(Appeals) and relied on the order of coordinate bench decision in the case of DCIT Vs. Global e-Business Operations Ltd in IT (TP) A no208&318 (Bang) 2014 dt.16.08.2017. 5. We heard the rival contentions and perused the material on record. Prima facie, the contention of the learned Authorized Representative that there is no finding by the CIT(Appeals) and non-adjudication of Map percentage on other entities. We find the co-ordinate bench of the Tribunal in the case of DCIT Vs. Global e-Business (supra) has dealt on the margin accepted in the Map and non- Map transactions at pa....

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.... MAP resolution letter dated July 04, 2017) and between India - UK (vide MAP resolution letter dated September 27, 2017) respectively, is specific to those countries and cannot be applied to the international transaction with the remaining countries, thereby confirming the ALP adopted by TPO of 24.67 percent for remaining countries. That while holding so, the learned CIT(A) has further erred in not appreciating that since nature of international transaction with all the countries is exactly same viz. provision of consulting services, the MAP resolution accepted by the Governments of the two Sovereign States (viz. India - US and India - UK respectively) ought to have been applied for the remaining countries as well....

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....tions is hereby sustained. As the main grounds are adjudicated following MAP resolutions of US and UK, all the other related grounds on Transfer Pricing Matters are not required to be adjudicated separately. Document 3 6.5.5 There has been judicial precedence on this issue, wherein the co-ordinate bench of this Tribunal has held that the margin accepted under MAP for the USA transactions may be adjusted for the non-USA transaction as well. In similar circumstances and fact situation in the case of CGI Information Systems and Management Consultants Pvt. Ltd., in order in ITA Nos. 439 & 452/Bang/2011 dated 21/4/2017, the co-ordinate bench of this tribunal has held that the margin applied for the USA transactions shall b....