TaxTMI 
TaxTMI 
2021 (5) TMI 1022
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.... and perused the material on record. The main issue for consideration is whether the CUP method to be followed or TNMM to be followed to determind the ALP of assessee's case. This was considered by the Tribunal in the case of M/s Knorr Bremsc India Pvt. Ltd. Vs. ACIT vide order dated 31.10.2012, wherein held that:- "9. The appellant has also assailed the addition made on account of international transactions (Rs. 1,52,07,206/- towards professional consultancy and Rs. 1,40,56,800/towards management fee for support services), by determining Nil value as the ALP. The TPO found that these services provided by the AE are very general in nature and such a support is expected from AU even without payment of any such charge. The assessee argued that the authorities below are stated to have acted beyond their jurisdiction in touching upon the commercial expediency of the transactions. The DRP, however, has found that Emails brought on record merely justify presence of Ms.Rita Ricken as team leader of sales logistics, which is only an effort to justify her presence. She in fact is safeguarding group interest shareholder interest. The TPO has analysed each service and benefit received b....
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....it that can be said to have reached the assessee. It, therefore, cannot be said to have questioned the commercial expediency of such transactions entered by the appellant. The I.T. Rules contain exhaustive detail regarding nature of information and documents which are required to be maintained by the assessee. Rule 10D(1) of the I.T.Rules, 1962 also mandates the maintainability of record of uncontrolled transactions to be taken into account in analysing the comparability of the international functions entered into by the assessee. It, therefore, is obligatory on part of the appellant to maintain such record and produce the same before the TPO to show that it has benchmarked the international transaction at ALP. This obligation, however, has not been discharged by the assessee. 9.3. The appellant in the present case is also not shown to be willing to pay any amount for such services, if it were, so provided by an independent enterprise or if the same would have been performed in house. The DRP is found to have considered these services as nonbeneficial for the recipient and did not take it as chargeable services. The perusal of e-mails and other contemporaneous record only goes to....
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....parately benchmarked or whether the transactional net margin method ought to be adopted in respect of the same as well." In view of the above findings of the Hon'ble Delhi High Court, we remit the issue to the file of T.P.O. For her consideration in the light of above judgment." 3. These appeals were filed by the respondent against Final Assessment Orders dated 25.2.2015 for the assessment years 2010-11 and 2011-12 passed by the respondent. 4. Earlier, Transfer Pricing Order dated 28.01.2014 was passed by the Transfer Pricing Officer, pursuant to a reference under Section 92 CA (1) of the Income Tax Act, 1961.for the assessment year 2010-11. Pursuant to the aforesaid orders of the Transfer Pricing Officer, the respondent herein passed a Draft Assessment Orders dated 13.03.2014 for the aforesaid assessment years 2010-11 under Section 144 C (1) of the IT Act, 1961. 5. Under these circumstances, the petitioner approached the Dispute Resolution Panel under section 144C of the Income Tax Act, 1961 with its objection. The Dispute Resolution Panel thereafter passed an order/direction dated 24.12.2014 under Section 144C of the IT Act, 1961. 6. Pursuant to the aforesaid order of t....
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....e respondent, Income Tax Department submits that the Income Tax Appellate Tribunal had allowed appeals for statistical purpose as per the decision of the Punjab and Haryana High Court in Knore Bremses India private vs AICT (2015) 6 Taxmann.com therefore submitted the writ petition was therefore, without merits. The order was in compliance of the order of the tribunal - ITAT. 12. It is further submitted that the assessments cannot be prolonged endlessly in as much as the issue has been answered on merits the Income Tax Appellate Tribunal therefore, it was a useless formality for the respondent to pass a Draft Assessment Order to facilitate the petitioner to one again to re agitate the issue before Dispute Resolution Panel. 13. I have considered the arguments advanced by the learned counsel for the petitioner and the learned counsel for the respondent income tax. The issue is no longer res-integra. In fact, today by a separate order in W.P.No. 32751 of 2017, I have allowed the writ petition, under similar circumstances, the following observations- 19. When the law mandates a particular thing to be done in a particular manner, then it has to be done in the manner. In this connecti....