2021 (11) TMI 1122

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.... passed u/s 143(3) read with section 144C of the Act dated 27.05.2016 was partly allowed. 2. The assessee has raised the following grounds of appeal:- "1. That the Learned Commissioner of Income Tax (Appeals) ["Ld. CIT(A)"], Learned Assistant Commissioner of Income Tax, Circle 25(2) ("Ld. AO") and Learned Deputy Commissioner of Income Tax, Transfer Pricing Officer 3(2)(1) ("Ld. TPO"), erred on facts and circumstances of the case and in law by enhancing the income of the Appellant by INR 9,049,787 on account of transfer pricing ("TP") issues. 2. That the Ld. CIT(A)/Ld. AO/Ld. TPO have erred on facts and in law, by holding that the international transaction related to payment of management service fee does not satisfy the....

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.... management services; 2.5 not appreciating the detailed submission furnished by the Appellant against remand report issued by the Ld. TPO; and 2.6 disregarding various judicial pronouncements of the Hon'ble High Court and Hon'ble Income Tax Appellate Tribunal while determining the impugned adjustment. 3. That on the facts and in the circumstances of the case and in law, the Ld. AO has erred in levying interest under section 234A, 234B, 234C and 234D of the Act. 4. That on the facts and circumstances of the case and in law, the Ld. AO has erred in initiating penalty proceedings under section 271(1)(c) of the Act." 3. The only issue involved in this appeal is that the ld AO has made an adjustment based o....

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....see also stated it has received the benefit of service by specialized experts. The assessee was asked to provide the need for such service against which the assessee could not submit anything except the service agreement. The assessee has merely submitted a write up and the ld AO directed the assessee to show whether such services were actually required or not. The ld TPO was not convinced with respect to the need test, benefit test, rendition test, duplicative service test, share holder activity. He held that no justifiable documentation has been provided to support its claim for receipt of such services. Accordingly, he held that no 3rd party under uncontrolled situation would pay such fees. He determined of such services at Rs. Nil. The ....

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....ce agreement. He referred to Appendix-K which is page No. 133A of the transfer pricing study report where the type of services rendered and received by the assessee is shown along with basis of the allocation, details of services availed, manner in which services rendered and details of benefit derived is mentioned. He further referred to page No. 250 of the paper book which are bills for the services availed by the assessee. He referred to Page No. 251 of whereby complete details are submitted of the services received. In view of this, he submitted that the addition confirmed by the ld CIT(A) deserves to be deleted. 8. The ld DR submitted that if in a service any 3rd party would make a payment then such services should satisfy the follo....

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....services have been rendered or not. We agree with the ld DR that the some agreement as well as the mere production of the bill do not show that services have been rendered to the assessee. Coming to the argument, we have perused page No. 133A of the Paper Book. On perusal of the same we find that these are mere methodology without showing actual evidence of the rendition of the services. Coming to the bills produced by the assessee at page No. 250 of the paper book we find that the same is supported by Annexure from Page No. 251 to 258. The Annexures shows that it has the names of the certain persons who have been deputed and have allegedly performed certain services. The details of number of test is devoid by them is also tabulated and sam....