AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (8) TMI 917
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....e disposed of by this common order for the sake of convenience and brevity. 2. The common grievance of the Revenue reads as under: "On the facts and in circumstances of the case, the Ld. CIT(A) has erred on facts in law in deleting the addition of Rs.1,20,46,033/- [Rs. 4,58,23,613/- in Assessment Year 2012- 13] made by the Assessing Officer on account of difference in Arm's Length Price of International Transactions disregarding the fact that the addition was made on the recommendation of the TPO which is an independent Authority to see the matter with regard to Arm's Length Price.?" 3. Briefly stated, the facts of the case are that the appellantcompany is a wholly owned subsidiary of Knorr Bremse Far EaSt Limited and was engaged....
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....ervices 793,170 13 Professional Charges for RS3 Project 31,311,174 14 Professional charges for CAF 4,387,300 15 Reimbursement of miscellaneous expense to AEs 2,857,636 No Benchmarking required 16 Reimbursement of miscellaneous 19,046,418 TOTAL TRANSACTIONS 951,179,207 6. The TPO accepted the assessee company's selection of TNMM as the most appropriate method for determination of ALP for all the above international transactions except the following two items wherein he applied CUP as the most appropriate method: i) Availing of professional consultancy services; and ii) Availing of management support services. 7. The TPO made adjustments on account of manageme....
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....n on absolutely identical facts no addition has been made by the AO on this issue, and obviously none recommended by the TPO too. Thus to sum up, on identical facts, the appellant has got relief from the Hon'ble ITAT for Asstt. Year 2008-09, and no adjustment has been made by the TPO and the AO on absolutely similar facts in Asstt. Year 2013-14. 16. Thus based on these facts and following the order of the Hon'ble ITAT in the case of the appellant himself as reproduced above, I have no hesitation in deleting the addition and allowing Ground Nos. 2 to 11 of the appeal" 10. Aggrieved by this, the Revenue is before us. 11. The ld. DR strongly supported the findings of the Assessing Officer/TPO. 12. Per contra, the ld. counsel for the ass....
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.... the transaction of Infra Group Services was not correct and permissible? 3.) Whether on the facts and in circumstances of the case and in law, the Hon'ble ITAT was right in 4 of 6 7. It is the contention of Mr. Tajender Joshi, Ld. Counsel for the Revenue that the Tribunal had fallen in error in rejecting the Cup Method employed by the TPO and accepting the TNMM used by the assessee in its transfer pricing analysis. It was also argued that the ITAT has not passed the order as per the directions/ observations given by this Court in the order dated 06-11-2015. He relied on the observations made by this Court in above said order and contended that this court did not held that the CUP method applied by the TPO was wrong and TNM method was....
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....where an independent entity had availed of services and had not paid any remuneration for the same. 10. In light of the above, the conclusion of the ITAT could not be faulted as the same was inconsonance with the provisions of the Act and the Rules. The contention of the Counsel for the revenue cannot be accepted as the Tribunal while upholding the TNMM Method has observed that the other methods prescribed under the Act namely the CUP or Cost Plus Method being not applicable in the facts and circumstances of the case, the Respondent Assessee could only resort to TNMM as the most appropriate method to show that its profit margin from international transactions was at arm's length. 11. Further, the Tribunal has concluded that the expens....