2022 (2) TMI 1301

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....r dated 24.07.2018 along with Revenue's appeal, being ITA No.6144/Del/2014. However, while disposing of the appeal, since ground no. 3 to 3.4 remained un-adjudicated, the Tribunal, on an application made by the assessee, being registered as M.A. No. 605/Del/2018 passed an order on 24.04.2019, recalling the appeal order only to the limited extent of adjudicating ground nos. 3 to 3.4. This is how the present appeal came up for adjudication before this bench. Ground No. 3 to 3.4 raised by the assessee read as under: The learned CIT (Appeals) erred in considering the payment of INR 19,465,250 by the Appellant towards the administrative services received from the Associated Enterprises ("AEs") to be 'Nil", and in doing so grossly erred ....

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....sessee entered into various international transactions with its overseas AEs. During the year under consideration, the assessee, inter alia, entered into international transaction relating to provision of administrative services by the AE. From the report filed in From No. 3CEB, the Transfer Pricing Officer (TPO) noticed that the assessee has paid an amount of Rs.1,94,60,588/- towards payment of administration fee to the AE. Noticing the nature of payment, the TPO called upon the assessee to justify arm's length nature of such payment. In response to the query raised, the assessee furnished its reply stating therein that it has entered into a service agreement with another group company, viz., Akzo Noble Car Refinishes, Singapore, wherein A....

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.... AE, and the fact that services in terms of agreement has been provided, cannot be disbelieved. He submitted, in course of proceeding before the departmental authorities, the assessee has furnished the service agreement and other evidences to demonstrate that services were actually rendered to the assessee by the AE. He submitted, the assessee has also provided allocation key for the fee allocated to the assessee. Thus, he submitted, in face of such evidence, the TPO cannot determine the ALP at nil by disbelieving the fact that the assessee has not received any such services. Without prejudice, he submitted, the matter may be restored back to the Assessing Officer for providing opportunity to the assessee to furnish more evidence to demonst....