TaxTMI 
TaxTMI 
2020 (11) TMI 1091
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....he Assessment Year 2015-16, passed in pursuance of direction of the ld. Dispute Resolution Panel-1. In all the appeals, common issue is involved relating to Transfer Pricing Adjustment on account of payment of Research and Development and other R&D related services, which has been held to be intra group services (IGS) by the TPO. In all the years under appeal, the ld. TPO has determined the ALP and the contribution made towards research and development activities at Nil. 2. The facts in brief are that Atotech India Pvt. Ltd. is a subsidiary of Atotech BV Netherlands engaged in the business of manufacturing and marketing of specialty chemicals and compounds used for general metal finishing and production of printed circuit boards. The ld.....
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....oved the CUP as the most appropriate method, but on the basis of a concession given by the assessee as has been recorded therein. The ld. AR did not give any concession for the applicability of the CUP as the most appropriate method for the year under consideration. We further find from the order of the Tribunal for the assessment year 2011-12 that there is no adjudication on the applicability of a particular method as most appropriate for determining the ALP of the international transaction. 13. By now, it is fairly settled through a catena of decisions that the CUP is the most appropriate method to determine the ALP of an international transaction because it seeks to compare the price charged or paid for property transferred or s....
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....e or were duplicate in nature. Such a view has been overturned by us in earlier paras. Under these circumstances, we are left with no option but to set aside the impugned ITA Nos.3419 & 6571/Del/2016 & 1112/Del/2014 13 order and remit the matter to the file of AO/TPO for a fresh determination of the ALP of the international transaction, primarily, under the CUP method. In case, the TPO finds that the CUP method cannot be applied either due to non-availability of the relevant data or for some other genuine reasons, he is free to apply any other appropriate method for a fresh determination of the ALP of the international transaction of `Management Group cost'. Needless to say, the assessee will be allowed a reasonable opportunity of ....
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....acceptable criteria for benchmarking an international transaction; * Consider the ruling pronounced by Hon'ble ITAT in matter of Dresser-Rand India Pvt. Ltd. vs. ACIT [ITA No. 8753/Mum/20io] while deciding the issue. 6. Further, in the order for the Assessment Year 2011-12 in ITA No.66/Del/2015, the Tribunal has set aside the issue to the file of the TPO to examine the issue afresh after considering the following:- i) Contention of the Assessee that the ALP of the contributions made towards the Research & Development related activity was accepted to be at arm's length by the Ld. TPO during previous assessment year's namely AY 2007-08, AY 2008-09, AY 2009-10 & AY 2010-11 and the fact that the contributions were made ....
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....the TPO for fresh adjudication in line of direction given by the Tribunal in earlier years. 10. After considering the submissions and the impugned orders as well as the Tribunal order in assessee's own case for the earlier years, we find that the only controversy involved in all the assessee's appeals is with regard to payment made for management related activities under CSA which has been taken at 'Nil' by the TPO. This adjustment is a recurring issue in assessee's own case right from the Assessment Years 2007-08, 2009-10 and Assessment Year 2012-13. The Tribunal has remanded this issue to the file of the Assessing Officer with certain directions. The relevant findings and observations of the Tribunal in the appeal for the Assessment Ye....