2022 (9) TMI 1438

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....of the the Income Tax Act, 1961; in short "the Act". Heard both the parties. Case files perused. AY 2013-14 Assessee's appeal ITA No. 204/PUN/2018 2. Learned counsel submits during the course of hearing that the assessee's ground nos. 1 to 3 and 8 are general /consequential in nature. Rejected accordingly. 3. The assessee's substantive grounds nos. 4 to 4.5 challenge correctness of the learned lower authorities action making arm's length price "ALP" adjustment of Rs.13,16,72,743/- pertaining to its receipts of corporate support services thereby placing reliance on their respective orders in preceding assessment years right from 2008-09 onwards. The same admittedly appears a recurring issue between the parties therefore. This tribunal's....

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....rated to participant. Merely allocation of the cost on the basis of turnover does not justify the event either of availing the services or the arm's length price of the transaction. The Taxpayer to establish that the payments were made commensurate to the volume and quality of services and such costs are comparable. Further, the AO held that the assessee has not submitted any details of the expenses incurred by the associated enterprises and failed to establish that fees charged are commensurate benefits against the payment of service fees to the AE. That the expenses were apportioned by the AE among different countrycentres on the basis of their own agreements and it has no direct relation with the actual services rendered to individua....

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....2 is applicable to the issue raised in ground Nos. 5, 6 and 7. Thus, ground Nos. 5, 6 and 7 raised by the assessee are allowed." 4. The very factual position continues regarding the next twin issues of "ALP" adjustments of Rs.6,26,38,000/- and 3,85,97,146/- inter alia pertaining to manufacturing segment and disallowance of corporate cost allocation; respectively wherein the department once again has lost in its arguments in all the preceding assessment years. Learned co-ordinate bench hereinabove has dealt with the instant issue(s) as follows:- "4. The brief facts of the case as emanating from the record are that the assessee company is engaged in the manufacture and distribution of fluid power equipment such as pumps, gear pumps, valve....

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.... 56 taxmann.com 135 for A.Y. 2007-08 held that the internal TNMM is the most appropriate method and referred to page 236 of the paper book and do our attention to para 17 wherein this Tribunal upheld internal TNMM is the most appropriate method to compute arm's length price for the international transactions of purchase of raw material and components from associated enterprises. The ld. AR brought to our notice the ITAT, Pune Benches upheld the same internal TNMM for A.Ys. 2008-09, 2010-11 and 2011-12. There is no contrary order brought on record by the respondent-revenue in this regard. Therefore, we uphold the internal TNMM adopted by the assessee in determining ALP of its international transactions in purchase of raw material, components....