TaxTMI 
TaxTMI 
2020 (8) TMI 917
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....ese appeals were heard together and are 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 ....
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....nnectivity Services 3,099,363 11 Repair and Maintenance Support Services 10,639 12 Provision of Retro-fitment services 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 th....
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....previous assessment year. Moreover, the appellant has also produced before me the assessment order in the appellant's own case for Asstt. Year 2013-14 passed by the AO (DCIT, Circle - 1, Faridabad dated 25.1.2016) wherein 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 addi....
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....ices without appreciating that the TNMN is not most appropriate method in determining the ALP of Infra Group Services 2.) Whether on the facts and in circumstances of the case and in law, the Hon'ble ITAT was right in holding that aggregation of 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 ....
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....pointed query by the Bench whether in terms of Rule 10C read with Section 92C of the Income Tax Act and Rules, the Transfer Pricing Officer had referred to any comparables to apply the Cup Method in the facts and circumstances of the case, the counsel could not indicate any instance 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 Metho....