TaxTMI 
TaxTMI 
2021 (1) TMI 1289
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....facts and in the circumstances of the case, the Ld. CIT (A) has erred on facts and in law in deleting the addition of Rs.6,97,61,263/- made by the AO rejecting the TNMM method applied by the assessee and used cup method for benchmarking the transaction of Intra Group Services (professional consultancy services and management fee for support services)." 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : Knorr Bremse India Pvt. Ltd. (KB India), the taxpayer is a wholly owned subsidiary of Knorr Bremse Asia Pacific (Holding) Limited (KB Hongkong). The taxpayer is into manufacturing of airbrake sets of passenger cars and wagon coaches, shock absorbers for passenger cars and locomotives, distributor valves....
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.... of KB India. Accurate division of these between the three segments is not possible. However, since all these three segments of KB India are at arm's length, these transactions have also been considered to be at arm's length. 11 Availing of Information Technology Consultancy Services Common segment - Manufacturing distribution and service 4,47,57,627 12 Reimbursement of miscellaneous expense to AEs Others 1,37,82,156 Other Method as per Rule 13 Reimbursement of 10AB miscellaneous expense from AEs Others 3,66,52,177 14 Interest on ECBs availed in FY 2011-12 Others 1,17,37,884 Comparable Uncontrolled Price Method ("CUP") 4. Ld. TPO questioned two transactions undertaken by the taxpayer ....
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....- by the ld. CIT (A) made by the AO on the ground that ld. CIT (A) has erred on facts and law by rejecting the CUP method applied by the ld. TPO/AO in order to benchmark the international transactions qua Intra Group Services (professional consultancy services and management fee for support services). 8. Ld. DR for the Revenue challenging the order passed by the ld. CIT (A) relied upon the order passed by the TPO/AO. However, ld. AR for the taxpayer contended that this issue is covered in favour of the taxpayer in its own case for Assessment Years 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 decided by the Tribunal. The Revenue has challenged the order passed by the Tribunal for AYs 2007-08, 2009-10 & 2010-11 before the Hon'ble Punjab & ....
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.... right in holding that segregation 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 ignoring the findings of the TPO/AO that services were not received by the assessee from A.E.?" 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 b....
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....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 Method being not applicable in the facts and circumstances of the case, the Respondent Assessee could only resort to TNM....