TaxTMI 
TaxTMI 
2022 (1) TMI 277
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....ispute Resolution Panel (DRP). The grounds urged by the assessee relate to the following two issues:- a) Transfer pricing adjustment made in respect of payment of Corporate management services b) Computation of deduction u/s. 10AA of the Act by not including items that were excluded from export turnover from the total turnover. 2. The facts relating to the case are stated in brief. The assessee company is engaged in the business of processing electronic, financial and payment transactions and ATM shared network. It has entered into several international transactions with its Associated Enterprises (A.E), which inter alia include includes following payments made to its A.E. Nature Amount (Rs.) Switch, AMC, Maint....
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....nsidering the additional evidences and explanations furnished by the assessee. 5. The Ld. D.R, on the contrary, supported the orders passed by TPO and Ld. DRP. He also submitted that additional evidences furnished by the assessee requires examination at the end of AO/TPO. 6. We heard rival contentions on this issue and perused the record. The Ld. A.R has furnished written submissions, wherein it is stated as under:- "2.3 Euronet is an electronic payments provider. The company provides electronic transaction processing services and end-to-end ATM outsourcing services to various large banks and other customers. It offers payment and transaction processing and distribution solutions to financial institutions, retailers, service ....
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.... are fully integrated with the Group's business. The assessee paid technical support charges to the AE for the direct and indirect services availed and these charges were classified as "Corporate Management Fee" 2.6 Therefore, these Corporate Management Fee are linked and related to the core business of the assessee and are a necessary part of the other charges paid to the AE like, Switch, AMC and maintenance fee, license fee etc. 2.7 Therefore the TPO was wrong in treating these payments as different and distinct from other payments to the AEs and treating the ALP of this payment as Nil, even while allowing the other payments. 3. Nature of services (Page 160 to 163 of PB) 3.1 EWI, the parent company,....
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....not file any evidence for rendering of the services 4.2 As the annexure to the submission dated 27.01.2016 containing the evidences was inadvertently omitted to be placed in the paper book, these evidences have been filed before the Hon'ble Tribunal as Additional Evidence, vide letter dated 9.12.2021 4.3 The TPO was wrong in stating that the assessee did not furnish any evidence for receipt of services (Para 3.3 of the TP order) 4.4 While the DRP has fairly accepted that the assessee submitted evidences for receipt of services, the DRP has held that the assessee did not prove the tangible benefit received from the services. 4.5 Hence, it is submitted that the TPO/DRP did not examine the evidences subm....
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....ee have not been correctly appreciated by the AO/TPO. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO/TPO. Accordingly, we set aside the order passed by the AO on this issue and restore the same to the file of AO/TPO for examining it afresh duly considering the additional evidences furnished and also the information and explanations that may be furnished by the assessee. 8. The next contested by the assessee is with regard to the computation of deduction u/s. 10AA. The assessee had claimed deduction of Rs. 2,30,44,6530/- u/s. 10AA of the Act. On examination of the same, the AO noticed that the assessee has not deducted expenditure such as leased line charges of Rs. 8,25,000/-, foreign curre....